2. This is a question where you just need to do a few calculations (and, it's okay to usea calculator here but show the underlying equations driving your calculator use). Don't make it more difficult than it is! Here's the general scenario: someone borrows money and at the end of the year the person owes the money they borrowed plus the interest payment that is due on the loan. So, for instance if I borrow $10,000 for a year at 2% interest, then at the end of the year I will owe $10,000 plus (10,000)02) or $10,200. And, if I don't pay off any of the loan that first year then at the start of the second year I will owe $10,200 and at the end of the second year I will owe $10,200+ (10,200)(.02) or $10,404. Use this example to guide your work for this problem. Bob purchased a new car for S30,000, and paid $10,000 in cash and then borrowed the rest of the money from a bank to make the purchase. He takes out a loan for the remaining $20,000 at 1% compounded annually How much does Bob owe to the bank at the end of the first, second and third year if he doesn't make any payments to the bank? Carry your calculations out to two places past the decimal. If Bob wants to repay his loan as well as the interest that is due on the loan within a year, what does his monthly payment need to be? a. b. c. If Bob pays $600 per month, could he repay his loan in two years? Three years