Question 2 Jamal wants to borrow RM60,000 for a period of 5 years. The lender offers him a choice of three payment structures: 1) Pay all the interest (8% per year) and principal in one lump sum at the end of 5 years. 2) Pay interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year. 3) Pay 5 equal payments at the end of each year inclusive of interest and part of the principal. a. Calculate the total amount of the payments and the amount of interest paid under each alternative. (9 marks) b. Under which of the three options will Jamal pay the least interest. Justify your answer. (3 marks) c. Briefly explain an annuity. (3 marks) d. Finance helps people and businesses make decisions about when to buy and when to sell and about what to buy and what to sell. Whether you are the manager of a small retail store or a senior officer in a large firm, the economic objective of your financial decision is the same: to make the enterprise and yourself better off. Finance is not just about money and investing; it is much broader. Finance is the art and science of managing wealth. Outline FIVE (5) financial manager's functions in a business organization. (10 marks) [Total: 25 marks]