correct answers are i) 20.55, ii) d=5.81% and iii) d^12= 5.97% No tables, only formulas, please A short-term loan of £5,000 is repayable in 25 days at a simple rate of interest of 6% p.a. Assuming that 1 year is equivalent to exactly 365 days, calculate the following: (i)  The amount of interest, to the nearest £0.01, accrued on the loan in 25 days; (ii)  The annual effective rate of discount equivalent to this transaction, to the nearest 0.01%; (iii)  The annual nominal rate of discount convertible monthly equivalent to this transaction, to the nearest 0.01%.

A loan of £13,000 is repaid by annual payments of £1,600 each at the end of the year. How long does it take to repay the loan on the basis of an interest rate of 7% p.a.? Number years Enter an answer correct to 2 decimal places Suppose the payment at t = 12 is increased to repay the loan (a balloon payment). What is the value of the payment at t = 12? £ Number Enter an answer correct to 2 decimal places Alternatively, the loan may be repaid via a payment at t = 13 (a drop payment). What is the value of the payment at t = 13? £ Number Enter an answer correct to 2 decimal places

TASK: 2 are mu pare Apply your understanding about the present value and future value of annuities and prepare TWO Loan EMI (EMI = Equated Monthly Installments) payment schedules based on the following instructions: 1. Loan Summary and schedule of Short term loan (20 marks) 2. Loan Summary and schedule of Long term loan (20 marks) Guidelines: 1. Suggested Short term Loan period is 1 year to 3 years 2. Suggested Long term Loan period is 7 years and above 3. Each loan summary should contains following points: a. What type of loan is chosen? b. Why it is chosen? C. Interest rate, number of years (loan period) and loan amount to be assumed and clearly stated d. Starting date and ending date of the loan period is to be mentioned 4. The payment schedule should cover the following: a. Serial No. b. Date (period) c. EMI amount (EMI = Equated Monthly Installments) d. Principal component of the EMI e. Interest component of the EMI f. Interest paid to date g. Principal paid- to date h. Principal…

am. 25.