1.1 You want to buy a car and you have narrowed down your options to a brand-new Chevy Spark at R144 900 or a demo VW Polo. You have contacted your bank and they will finance the Chevy at prime (currently 9% p.a) +2% over five years. The VW dealership has a special on at the moment and the Polo TSI Trendline is R196,000. They will provide finance over seven years at prime less 2%. Prime is currently 9% p.a. If you can afford to pay a maximum of R3,200 per month for car repayments, which vehicle would you choose? 1.2 Just as you are about to buy the vehicle in (2), the Reserve Bank announces that it will increase interest rates by 1%. This means the prime rate increases by the same amount. How much more will you have to pay each month for your chosen vehicle