1. Jack needs $5200 in 6 years from today to buy a holiday. He invests $2400 today. Find the effective annual rate of interest that Jack needs to earn on this amount (as a %, 2 decimal places) in order to reach his goal.

2. Jill wants to buy a car but needs to calculate how much she can afford to borrow. The maximum she can repay each month-end is $490 per month and the bank has indicated it will charge a fixed 6.5% p.a compounding monthly. If she takes a loan for 5 years how much can she afford to borrow?