Question 5. Kabwe Mulenga wishes to send his ten-year-old daughter to university and therefore wants to begin saving now. He goes to his local bank and is offered a rate of 7%. How much must he deposit now so that when his daughter turns 18 and goes to university, she will be able to withdraw K20,000 at the end of each year, for four years to pay for her tuition? Question 6. You buy a new car today for K120,000.00 and obtain finance for 80% of the purchase price over three years. The bank quotes you a finance rate of 12%. Instalments are payable monthly in advance. Interest is compounded monthly. Calculate the monthly instalment and the balance immediately after making the twenty-fourth payment. Question 7. Your young sister wants to get a loan to finance her start up business selling shoes. She goes to Absa bank and they offer her a loan at 14.5% compounded annually and she goes to Bayport who offers her a loan at a rate of 14% compounded quarterly. Being a corporate finance student, which loan would you advise your sister to take