To finance the expansion of your business, you borrowed RM 120,000 at a 7.8%

p.a. nominal rate of interest to be repaid over seven years. The loan is amortised into eighty four equal end-of-month payments.)

(Calculate each end-of-month loan payment.)

(3 markah / marks)

(Based on your working on an amortisation table, how much principal and interest would have your company paid after the first three months of payments?)

(8 markah / marks)