The parents of a student at an expensive private school are experiencing financial difficulties. They enter an agreement with the school to pay the annual school fees in weekly installments. Instead of paying $8600 immediately they will make the first of 46 weekly installments at the end of six weeks. If the school charges interest of 8% per annum, compounded weekly, for the whole period until the debt is repaid, how much will each payment be?

(b) The parents decide that because of continuing business problems they also need to take out a loan of $100,000 to be repaid over 10 years, using their house as security.

(i) Initially the interest charged on the loan is 9% per annum, compounded monthly. Payments are made at the end of each month. What is the amount of the payment?

(In your calculations for Part (b) use interest rates correct to four decimal places.)