Question: Finance option B: A 6 year loan at a nominal annual interest rate of r % compounded monthly. Terms of the loan require a 10%

Finance option B: A 6 year loan at a nominal annual

Finance option B: A 6 year loan at a nominal annual interest rate of r % compounded monthly. Terms of the loan require a 10% deposit and monthly repayments of 250. 1d. Find the amount to be borrowed for this option. [2 marks] le. Find the annual interest rate, r. [3 marks] 1f. State which option Bryan should choose. Justify your answer. [2 marks] [3 marks] lg. Bryan's car depreciates at an annual rate of 25% per year. Find the value of Bryan's car six years after it is purchased. | Finance option B: A 6 year loan at a nominal annual interest rate of r % compounded monthly. Terms of the loan require a 10% deposit and monthly repayments of 250. 1d. Find the amount to be borrowed for this option. [2 marks] le. Find the annual interest rate, r. [3 marks] 1f. State which option Bryan should choose. Justify your answer. [2 marks] [3 marks] lg. Bryan's car depreciates at an annual rate of 25% per year. Find the value of Bryan's car six years after it is purchased. |

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