B3. Rodney's car engine suddenly stopped working while he was driving to work. The car repair cost was not expected and Rodney needed to borrow 5600 to pay the mechanic's bili. As he had a bad credit score, Rodney decided to take a small loan from CashnGo, an Australlan payday lender, with a term of 2 months and a fortnightty repayment schedule. CashnGo upfront establishiment fees are 20% of the borrowed amount while the monthly fees, which are charged at the end of every month until the debt is fully repaid, are 4% of the borrowed amount. If the direct debit for the payment is rejected at the scheduled date due to a fack of funds, the dishonour fees are $30. CashnGo then reorganises a new schedule for a fee of $15 by postponing all future planned instalmnents by a fortnight. (a) Represent in Rodney's balance sheet the effect of recelving a loan from CashnGo and paying the mechanic's bill with the money from the loan. [lgnore the fees and repayment of the loan] (b) Calculate Rodneys total fees paid to CashnGo if he is making his loan repayments at the respective due dates: (I mark) (c) Cakulate the equivalent annual interest rate that the fees in b) represent. [For that calculation only, assume that all fees are paid at the very end of the two month period] (t mark) (d) Identify Rodneys additional fees (in adyition to those already calculated in b) paid to CashnGo if he misses the last repayment and reschedules it to another date, two weeks after the original schedule. Assume that at the new date he manages to pay. (0.5 mark) (e) Compare the total CashnGo fees incurred by Rodney in the scenario described in d) to the total fees he would have incurred had he decided to be a roturning customer with Afterpay. Assume he missed the last Afterpay instaiment and repald it one a fortnight after. Did he make the right move to choose Cashnco? (t mark) (6) Being a student on Youth allowance, single, without children and living away from home, was an application for a Nil with Good Shepperd a feasible option fo Rodney? Explain your answer. (I mork) Hand write the onswers on a blank plece of paper with your full name ond student number ot the top of the poge. Take o picture or several pictures if needed and convert or them into a pdf file. Upload the pdf file into this question. Only one pdf file can be uploaded so merge your pictures if needed. Carefully keep your hand-wnitten answers and your original pictures for future reference. Attach File B3. Rodney's car engine suddenly stopped working while he was driving to work. The car repair cost was not expected and Rodney needed to borrow 5600 to pay the mechanic's bili. As he had a bad credit score, Rodney decided to take a small loan from CashnGo, an Australlan payday lender, with a term of 2 months and a fortnightty repayment schedule. CashnGo upfront establishiment fees are 20% of the borrowed amount while the monthly fees, which are charged at the end of every month until the debt is fully repaid, are 4% of the borrowed amount. If the direct debit for the payment is rejected at the scheduled date due to a fack of funds, the dishonour fees are $30. CashnGo then reorganises a new schedule for a fee of $15 by postponing all future planned instalmnents by a fortnight. (a) Represent in Rodney's balance sheet the effect of recelving a loan from CashnGo and paying the mechanic's bill with the money from the loan. [lgnore the fees and repayment of the loan] (b) Calculate Rodneys total fees paid to CashnGo if he is making his loan repayments at the respective due dates: (I mark) (c) Cakulate the equivalent annual interest rate that the fees in b) represent. [For that calculation only, assume that all fees are paid at the very end of the two month period] (t mark) (d) Identify Rodneys additional fees (in adyition to those already calculated in b) paid to CashnGo if he misses the last repayment and reschedules it to another date, two weeks after the original schedule. Assume that at the new date he manages to pay. (0.5 mark) (e) Compare the total CashnGo fees incurred by Rodney in the scenario described in d) to the total fees he would have incurred had he decided to be a roturning customer with Afterpay. Assume he missed the last Afterpay instaiment and repald it one a fortnight after. Did he make the right move to choose Cashnco? (t mark) (6) Being a student on Youth allowance, single, without children and living away from home, was an application for a Nil with Good Shepperd a feasible option fo Rodney? Explain your answer. (I mork) Hand write the onswers on a blank plece of paper with your full name ond student number ot the top of the poge. Take o picture or several pictures if needed and convert or them into a pdf file. Upload the pdf file into this question. Only one pdf file can be uploaded so merge your pictures if needed. Carefully keep your hand-wnitten answers and your original pictures for future reference. Attach File
