QUESTION 6 [TOTAL MARKS: 24 A loan of 80,000 is to be repaid over 25 years by level monthly instalments in arrears. The repayments are calculated assuming an effective rate of interest of 8% per annum. Calculate: 14) [4] (a) The level monthly repayment on the loan. (b) The interest and capital repaid in the first monthly repayment. (c) The total amount of interest paid during the last six years of the loan. (d) The interest included in the final monthly repayment 167 [5] If the loan was instead to be repaid by level annual instalments, rather than the level monthly instalments, explain why thu think the annual repayment would be higher, lower or the same as the annual repayment under the original terms and conditions. [5] [End of Question 6]