Question 1 Kath and Kim wish to buy a house, and need to borrow $300,000 from the Bogan Bank, which will charge interest at a rate of j 12-540 % p.a. They intendto repay this loan with monthly payments of $2500, with the first payment occurring one month after the loan was taken out A Illustrate the cash flows associated with this saving loan as a fully labelled time line diagram. 3 marks B Determine how long it takes to repay the loan. [4 marks] Eind the size of the partial payment. Describe and perform a sanity check on your answer. C 4+1+1-6 marks] D Construct an amortization table for the last two payments (that is, one full payment and one partial payment). Ensure that you show how you obtained your starting value for the table. Describe and apply a sanity check to your table. 1-10 rnarks] If Kath and Kim can afford to pay an extra $1000 a month for the first 36 payments (that is, pay $3500 a month for the first 36 months before dropping back to monthly payments of $2500) determine how much more quickly they will be able to rpay the loan. E marks