QUESTION 3 a) In order to start a business, Manimalai has to borrow $220,000 from a bank. The interest rate on the loan is 0.15% per month and Manimalai will make a total of 72 monthly payments. Construct the cash flow diagram and calculate the monthly payment. [5 marks] b) Suppose that Alim borrow $50,000 now, promising to repay the loan principal plus accumulated interest in five years at i=12% per year. Construct the cash flow diagram and calculate how much would Alim have to repay at the end of five years? [5 marks] c) Construct the cash flow diagram and calculate how much will you have in 40 years if you save $3,000 each year and your account earns 8% interest each year. [5 marks] [Total : 15 marks] QUESTION 3 a) In order to start a business, Manimalai has to borrow $220,000 from a bank. The interest rate on the loan is 0.15% per month and Manimalai will make a total of 72 monthly payments. Construct the cash flow diagram and calculate the monthly payment. [5 marks] b) Suppose that Alim borrow $50,000 now, promising to repay the loan principal plus accumulated interest in five years at i=12% per year. Construct the cash flow diagram and calculate how much would Alim have to repay at the end of five years? [5 marks] c) Construct the cash flow diagram and calculate how much will you have in 40 years if you save $3,000 each year and your account earns 8% interest each year. [5 marks] [Total : 15 marks]