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Question 5 [25 marks] 5.1 Hans Solo just borrowed 100,000. The loan is to be repaid in equal instalments at the end of each of
Question 5 [25 marks] 5.1 Hans Solo just borrowed 100,000. The loan is to be repaid in equal instalments at the end of each of the next five years and the interest rate is 12% per annum. Set up an amortization schedule for the loan. (14marks) 5.2 Robert currently has the following investments. He hopes to have saved 250,000 at the end of his three-year investment horizon. (a) Investment A : 90,000 growing at 5% p.a. compounded quarterly. (b) Investment B : 110,000 growing at 3% p.a. Has Robert achieved his savings goal? If not, determine the shortfall. (11 marks)
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