MoneyFlows Bank Plc. provides you with a loan valued at K10, 000 and you agree to repay the balance in 10 equal instalments, paid at the end of each period. The loan costs you 6% interest compounded semi-annually.
Required: (Round the answers to 2 decimal places)
i. Calculate the effective annual rate.
ii. Find the repayment to be made at the end of each period.
iii. Draw an amortization schedule for the first 3 periods.