Questions Q1a. Assume you take a loan of $355,000. The loan is for 10 years, and the annual interest rate offered by bank is 10.75 per cent. If the cash repayment

frequency is on monthly basis and interest payment frequency is on quarterly basis, using the worksheet "Amortisation_Q1" calculate the number of repayments, effective annual rate, and size of repayment on the loan amount. (3 marks) Q1b. Complete the loan amortisation table using worksheet "Amortisation_Q1". At the end of the table calculate the principal repayment amount for period 20? Comment on whether the effective annual rate calculated in part Q1a matches periodicity of cash flow or interest rate and explain why (4 marks)