Semester 1, 2019 Functions 1. You have taken out a loan of $300 000 at an interest rate of 3% per annum compounded quarterly. You plan to repay the loan in 240 reducing-principal payments made at the end of each quarter and starting at t end of the first quarter (a) How much is the principal reduced by after each payment? (b) Write down an expression for the loan balance before repayment Arm at the end of period m. This means that A1 should give the initial loan balance. (c) Write down an period expression for the interest Im owed at the end of m. Do not round values Semester 1, 2019 Functions 1. You have taken out a loan of $300 000 at an interest rate of 3% per annum compounded quarterly. You plan to repay the loan in 240 reducing-principal payments made at the end of each quarter and starting at t end of the first quarter (a) How much is the principal reduced by after each payment? (b) Write down an expression for the loan balance before repayment Arm at the end of period m. This means that A1 should give the initial loan balance. (c) Write down an period expression for the interest Im owed at the end of m. Do not round values