QUESTION THREE a) A mortgage of k200 000 is to be repaid over a 25 year period at a fixed interest rate of 4.5%. Calculate the monthly repayments. [10 Marks] b) K1200 is invested at 12.5% simple interest. How much will have accrued after 3 years? [5 Marks] c) To provide for future education costs, a family considers various methods of saving. Assume saving will continue for a period of 10 years at an interest rate of 7.5% per annum. i. Calculate the value of the fund at the end of 10 years when a single deposit of k2000 is made annually. [5 Marks] ii. How much should be deposited each month if the final value of the fund is k40 000? [5 Marks] D) A mainframe computer whose cost is K220,000 will depreciate to a scrap value of K12000 in 5 years. i. If the reducing balance method of depreciation is used, find the depreciation rate. i. [10 Marks] What is the book value of the computer at the end of the third year? [5 Marks] ii. iii. How much more would the book value be at the end of the third year if the straight line method of depreciation had been used? [10 Marks]