1. (32 pts) (a) (111 pts) James wants to take out a loan. Suppose he can a'ord to make monthly payments of $1,000 at an annual rate of 6 percent.J compounded monthly. 1What is the maximum amount that James could afford to borrow if the loan is to be paid eventually? (Find the answer using a graphical argument.) (b) (12 pts) How much can James borrow if he wants to pay the loan o in exactly 21] years? (c) (4 pts) Name two applications of difference equations (i.e. Loansnow you can't use that onel). 2. (15 pts) Suppose a savings account is opened with an initial deposit of $100. Suppose a deposit of $10 is made into an account at the end of each quarter-year and that the a1mual interest rate is 12% compounded quarterly. How much money is in the account after 12 years