Edith, current monthly salary is $6,000. Recently she faces financial problem caused by overspending. She has an outstanding balance of $400000 with her credit card account. As a measure to restructure her liability to reduce interest, she wishes to obtain a personal loan of the same amount to repay the outstanding balance. She has been introduced the following two personal loan plans which are repaid monthly: 

	Eager bank Eagle	Finance Limited Loan Type:
Loan Type:	Add-on Loan	Discount Loan Surcharge
Surcharge	Nil	4%
Flat Interest Rate:	3.6% per annum	3% per annum Loan
Tenor:	60 months	48 months

Required:

(b) By using the Excel APR calculator (downloadable from Moodie), compute the respective monthly payments and annualized percentage rates (APR) for the two loan plans if Edith borrows $400,000.

Answer rating: 100% (QA)

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