Question 2 (20 marks) You are considering to buy a house valued at $12,000,000. You approach a financial institution and got a quotation on financing rates. The loan had a repayment period of 8 years and the interest rate offered was 10%. The tax rate was given as 16.5%. Required a) Determine the annual payment to pay off the loan in 8 years. (2 marks) c) b) Set up an amortization schedule for the $12,000,000 loan to be repaid in equal instalments at the end of each of the next 8 years. The interest rate is 10%, compounded annually. (14 marks) How large must each annual payment be if the loan is for $8,000,000? Assume that the interest rate remains at 8%, compounded annually, and that the loan is paid off over 5 years. (2 marks) d) If given a second option of $12,000,000 house loan repayment is extended to 14 years at 8%, what your annual payments would be? (2 marks)