You borrow $80,000 from the bank to invest in your business. You plan to repay the loan through weekly payments of $500, with the first payment occurring one week 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 j52 = 3.75% p.a.

a) Determine how long it will take you to repay the loan. Describe and apply a sanity check for the duration of the loan. [2+1=3 marks]

b) Determine the size of the final (partial) payment. [4 marks]

c) Construct an amortization table showing the last six payments, that is, five 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. [5+1+1=7 marks]

d) Immediately after your 8th payment, the interest rate increases to j52 = 3.90% p.a. Assuming that you maintain the same weekly payments of $500, determine how long does it takes you to retire your debt and the size of the final (partial) payment. [6 marks] [Total for Question 22 = 20 marks]