Question 7 (20 marks] (a) A $10,000 loan is to be amortized with 12 equal quarterly payments over 3 years. The interest rate is r(4) = 6%. (i) Find the quarterly payment. (11) Construct an amortization schedule. (b) The Smiths buy a camp trailer and take out a $20,000 loan. The loan is amortized over 10 years with monthly payments at (12) 12%. After 3 years, they could refinance their loan at (12) -10% provided that they pay a penalty equal to 3 months' interest on the outstanding balance. Should they refinance? Justify your answer. (c) Consider a loan of $15,000 to be repaid over 5 years with a 5-payment annuity-immediate at effective rate of interest of 6% per year. Construct a sinking fund schedule for the loan