To upgrade its vehicles the company is exploring the of obtaining the option of obtaining the $10,000,000 required via a loan from its bank of 4 years, at an interest rate of 12% per annum. Monthly payments are expected to be made on the loan.

a 1. calculate the company's monthly payment on this loan.

a2. prepare the company's Amortization schedule for the first three months of the loan clearly showing the interest and principal payment.

b, As an added benefit to staff the company intend to start a trust Fund to assist the children of its employees with university tuition via scholarship. the intention of the company is to assist 4 different students annually with a $10,000 grant each. the grant is expected to be increased by 5% annually and provide scholarship indefinitely.

1. Assume this fund will earn 10% interest per annum, calculate the value of the fund today.

2. The company decides to fund this amount calculated in (1) via monthly deposits over the next 12 months in an enhanced saving account, after which the scholarship will begin. Assuming a return of 12% , compounded monthly , how much would the company need to deposit monthly over the next year , to achieve this goal.

3. compute the effective annual rate on this enhanced saving account