Question: Question 7 E noblesup If you don't repay a loan, and a lot of time passes, the debt can grow to unmanageable proportions, as happened

Question 7 E noblesup If you don't repay a loan, and

Question 7 E noblesup If you don't repay a loan, and a lot of time passes, the debt can grow to unmanageable proportions, as happened to an unfortunate borrower in Melbourne. anode moo 159long A grandmother has been forced to put her house up for sale after she ended up owing a massive $83 000 -on a $15 000 loan. Andrea lane, 57, borrowed the money in 2002 to pay for her father's funeral and to buy a new oven for her Clayton home. 000.0ZE Aut she could not meet the cost of the loan and 18 years later, the amount she owed had grown to $83 000 ... Andrea said: 'I borrowed the money when I was grieving for my father. I just signed the papers.' 000,26 000.008 000 88 000:008 a) Based on original loan of $15 000, calculate the monthly repayments to be repaid over (eric 5 years. Assume an interest rate of 25% p.a. Andrea can afford to pay $600 per month into the loan, and she has been able to negotiate a new interest rate of 8% P.a. ( o mulgi beJasgxe) A yhuope to 808 to etalanon offering A ins OS.0 b ) How long would it take Andrea to repay the loan? bojsages) a ythussa to 820A bons (60.0 c) If she cannot afford to increase her current repayments, and is unable to negotiate a better interest rate, recommend a strategy to reduce the total length of time to repay the loan? Based on this strategy, how much interest would she save

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