Jenny is a recent High School graduate who would like to estimate the expected repayments on her student loans. A three-year degree course would cost her $4,500 per year in fees, textbooks and other...

Extracted text: Jenny is a recent High School graduate who would like to estimate the expected repayments on her student loans. A three-year degree course would cost her $4,500 per year in fees, textbooks and other expenses. a. Assume that Jenny would like to get a loan for her three-year degree as a single lump sum at the start of her studies. She would like to pay back the whole loan within 5 years of when she borrows the money. She can borrow at a 4.5% interest rate. Decompose the interest and principal components. Show your full working in the spreadsheet and provide answers to the following questions to 2 decimal places: Interest component in year 5 - S Principle component in year 5 -5 Yearly loan repayment = S b. Jenny expects that the rate of interest on her loan will fall by 100 basis points (196) each year. Instead of taking out a lump sum in the first year, Jenny is considering spreading her loan over three years to take advantage of the falling interest rate. Jenny decides to takes out a loan each year for the three years she studies to take advantage of the falling interest rate. She plans to repay each loan within the same 5-year timeframe. Calculate the total loan repayments made by Jenny. Show your full working in the spreadsheet and provide answers to the following questions to 2 decimal places: Total repayment over the life of the loan - S c. Would Jenny be better off in scenario a) or scenario b)? Explain your answer in detail within your spreadsheet. Jenny would choose scenario -