Question 1 1. You borrow R20 000 from a bank to be repaid in monthly instalments for three years at 9% interest compounded monthly. (a) What is the portion of interest payment for the 18th payment? (6 marks) 2. You borrowed R10 000 from a bank at an interest rate of 9%, compounded monthly. This loan will be repaid in 48 equal monthly instalments over four years. Immediately after your 25th payment, if you want to pay off the remainder of the loan in a single payment. (a) what is the amount of the payment? (4 marks) 3. Your company borrowed R150 000, agreeing to pay the balance in 24 equal monthly instalments at 9% compounded monthly. (a) Determine the total interest payment during the first 12 months. (10 marks) 4. You are in financial trouble and are delinquent on your mortgage payment. Your bank has agreed to a repayment schedule of R1 600 per month, and it will charge 0.5% per month interest on the outstanding balance. (a) If the current outstanding balance is R250 000, how long will it take for you to pay off the loan?. (6 Marks) 5. Emmanuelle Ltd managed to achieve sales of R72 million for the year and the company's accounts receivables amount to R13.2 million. (a) What is the company's average collection period (days sales outstanding)? (10 Marks) 6. The management of Xolo Co has annual credit sales of R20 million and accounts receivable of R4 million. Working capital is financed by an overdraft at 12% interest per year. Assume 365 days in a year. (a) What is the annual finance cost saving if the management reduces the collection period to 60 days? (8 Marks) 1