You have been approached by a new microfinance; they want to consult you to come up with a model that will help them to answer the following questions:

1. (i) How much interest income and principal will they receive every month?
2. (ii) How many days left for a client to be due?

You have been provided with the following information.

Interest rates are 30% per month for vendors and 20% to civil servants, and currently the firm has K150 000 which is supposed to be loaned 50% to vendors and the remainder to civil servants. The vendors are loaned for a period of 3 months and they are installment will be settled as follows: 1st installment after 3 weeks, 2nd Installment at the end week 4, 3rd Installment at the end of week 8 and 4th installment at the end of week 8. The civil servants will repay in equal installments and their loans have a maximum tenure of 6 months.

Create a spread a model that will be able to show the above requirements and also calculate how much money interest income the firm will make assuming all the vendor clients borrow to maximum tenure and civil servants 50% will borrow for 2 months and the rest for 3months and the whole amount is loaned out at once. You are also advised to use a minimum of 20 clients in your model.