Question 3. Business has been slow so you cannot afford to pay the bank the $12,000 that is due today. The bank agrees to let you pay $7,000 today plus two equal payments at the end of 8 months and one year. The interest rate is j12 = 12%. Use 8 months as the focal date. (a) Draw a well-labelled time diagram. [2 marks] Time (b) Find the size of the equal payment. [5 marks] Answer (2 decimals) O Question 3. Business has been slow so you cannot afford to pay the bank the $12,000 that is due today. The bank agrees to let you pay $7,000 today plus two equal payments at the end of 8 months and one year. The interest rate is j12 = 12%. Use 8 months as the focal date. (a) Draw a well-labelled time diagram. [2 marks] Time (b) Find the size of the equal payment. [5 marks] Answer (2 decimals) O