You borrow $30,000 from the bank to invest in shares. You plan to repay the loan through fortnightly payments of $500, with the first payment occurring one fortnight after you receive the funds from the bank, and the final payment possibly being a partial payment. The bank charges interest at a rate of j26 = 5% p.a. No years are given

a) Determine how long it will take you to repay the loan. Describe and apply a sanity check for the duration of the loan.

b) Determine the size of the final (partial) payment.

c) Construct an amortization table showing the last three payments, that is, two full payments and a partial payment. Ensure that you show how you got your starting value for the table. Describe and apply a sanity check to your table

d) Immediately after your 15th payment, the interest rate increases to j26 = 7% p.a. Assuming that you maintain the same fortnightly payments of $500, determine how long does it take you to retire your debt.