Question 21 You borrow $12,000 from the bank to invest in shares. You plan to repay the loan through fortnightly payments of $1,000, with the first payment occurring one fortnight after you receive the funds from the bank, and the final payment possibly being a partial payment. The bank charges interest at a rate of j26 = 2% p.a. a) 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] b) Determine the size of the final (partial) payment. (5 marks] c) Construct an amortization table showing the last three payments, that is, two full payments and a partial payment. Ensure that you show how you got your starting value for the table. Describe and apply a sanity check to your table. [5 marks] d) Immediately after your 5th payment, the interest rate increases to j26 = 10% p.a. Assuming that you maintain the same fortnightly payments of $1,000, determine how long does it take you to retire your debt and the size of the final (partial) payment. [2+5 marks]