A sum of K3,000 is borrowed for 2 years at the reducing balance interest rate of 12% p.a. compounded every two-monthly.
(a) Show the full loan repayment schedule for the two years.
(b) Calculate the balance of loan owing at the end of the seventh repayment period.
(c) How much is the interest paid for this loan?
(d) If it decides to terminate the loan after the first year, find the termination payment required.