Quantitative Methods for business

Question 3 [14 marks] A spring manufacturer in Adelaide is expanding its business with new equipment and is in the market for a loan of $750,000. The manufacturer eventually security a 5% per annum, compounded monthly, loan for 4 years. a) What is the minimum monthly repayment? (4 marks) If you wish, you can use EXCEL for calculation. EXCEL Instructions: Refer to Topic 4 in the EXCEL booklet for instructions on how to use financial functions to make annuity calculations. b) Use EXCEL to set up an Amortisation Schedule for the loan. (7 marks) EXCEL Instructions: Refer to your amortisation notes from Week 3 and the corresponding EXCEL spreadsheet le on the course website, which you can modify to help you create the amortisation schedule for this question. Be sure to add your initials to all column names. You need to use formulas, do not simply type in values Therefore you need to show the formulas in your spreadsheet in this form B4=B3*$C$1. Failure to meet this requirement will result in a penalty (marks deduction). Hint: When you prepare the amortisation schedule, do not round the repayment to the nearest cent. Otherwise, the Outstanding Balance may not balance to o at the end of the term. You should use the 'format cells'in EXCEL to change the appearance of a number without changing the number itself. c) Calculate the total interest and the total amount paid over the life of the loan. (2 marks)