Question 21 You are opening a savings account which pays fortnightly interest at a rate 0szs = 2.3% p.a. You wish to save $55,000 for a mortgage deposit by depositing the same amount into the account at the end of each month, for 2.5 years, starting in a month's time. a} b) d) Determine the required size for the fortnightly deposit, R. Apply a sanity check. [2+1 =3 marks] Construct a sinking fund table for the last ve deposits. (Ensure that you show howyou obtained your starting value for the table.) Describe and apply a sanity check to your table. [4+1 +1 =6 marks] Suppose that immediately after your 253' deposit, the interest rate rises to jzs = 2.6% D-a- Determine the size of the deposits you must make in fortnight 25 an onwards in order to still make your target of $55,000. [5 marks J With the new interest rate 125 : 16% 3,3, construct a new sinking fund table for the last ve deposits. (Ensure that you show howyou obtained your starting value for the table.) Describe and apply a sanity check to your table. [4+1 +1 =6 marks] [Total for Question 21 = 20 marks] Question 22 You borrow $80,000 from the bank to invest in your business. You plan to repay the loan through weekly payments of $500, with the rst payment occurring one week after you receive the funds from the bank, and the nal payment possibly being a partial payment. The bank charges interest at a rate ofjsz = 3.75% p.a. a} b) d) Determine how long it will take you to repay the loan. Describe and apply a sanity check for the duration of the loan. [2+1 =3 marks] Determine the size of the nal (partial) payment. [4 marks] Construct an amortization table showing the tast six payments, that is, ve full payments and a partia! payment. Ensure that you show how you got your starting value for the table. Describe and apply a sanity check to your table. [5+1 +1 =7 marks] Immediately after your 8* payment, the interest rate increases to jsz = 3.90% p.a. Assuming that you maintain the same weekly payments of $500, determine how long does it takes you to retire your debt and the size of the final (partial) payment. [6 marks] [ Total' for Question 22 = 20 marks]