Question 2 (16 Marks) 2.1 (12 marks) You are a financial manager at ABC Pty Ltd and evaluating two loans. First National Bank (FNB) quotes a nominal annual rate of 12.64% compounded daily. Standard Bank quotes a nominal annual rate of 12.72% compounded quartely. Required; Which of the two loans should you select to obtain a favorable effective interest rate before-tax cost? 2.2 (4 marks) You wish to replace equipment 5 periods from now and recognize that a payment of R156 000 will be required at that time. If you wish to make equal annual end of year deposits in an account paying annual interest of 12%. Required; Determine the size annuity that will result in a sum equal to R156 000 at the end of Year 5. FVIFA) = (1 + ke-1 =1 Period 19 2% 30/5 496 5% 696 7% 8% 9% 10% 11% 12% 13% 14% 15% 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1,000 2 2,010 2,020 2,030 2,040 2050 2,060 2,070 2,080 2,090 2,100 2.110 2,120 2,130 2,140 2,150 3 3,030 3,060 3,091 3,122 3.153 3,184 3,215 3,246 3,278 3,310 3,342 3,374 3,407 3,440 3,473 4 4,060 4,122 4,184 4,246 4,310 4,375 4,440 4,506 4,573 4,641 4,710 4,779 4,850 4,921 4.993 5 5,101 5,204 5,309 5,416 5,526 5,637 5,751 5,867 5,985 6,105 6,228 6,353 6,480 6,610 6,742