Question 2 Describe the distinction between quoted rate and effective annual rate with example. Explain the relationship between compounding frequency and the annual effective rate. Question 3 Describe 3 criteria to be considered annuity cash flows. What the distinction between ordinary annuity and annuity due payment with example. Question 4 As the finance manager of a pipe manufacturing company you approach your bank to obtain a term loan so that the company can buy a new metal pressing machine. The bank offers your company a loan of $80,000 over a five-year period at a rate of interest of 12 per cent per annum, payable semi-annually. a) Calculate the semi-annual loan instalment. 6 N = 2 XS i kahan at m