Question 1 (a) You are saving up to buy a flat. (i) If you save 15,000 a year for 8 years at an interest rate of 5%, how much will you have saved after 8 years? (5 marks) (ii) If, instead, you make quarterly payments totalling 15,000 a year for 8 years, at an interest rate of 5%, how much more will you have saved after 8 years? Express your answer as a percentage. (6 marks) (iii) Explain your result in part (a) (ii) above, illustrating your answer by calculating the EAR of the investment in part (a) (ii) above. (6 marks) (b) You buy a flat worth 300,000, making a deposit of 150,000 and borrowing the remaining 150,000 on a 4-year mortgage. The mortgage interest rate is 9% a year (nominal) and the first of the fixed monthly payments is due in one month's time, the end of January. (0) Calculate the monthly mortgage payment. (8 marks) (ii) Prepare a loan amortisation table for the first two months of the mortgage and use this to calculate the interest paid at the end of February