Bill plans to start a fitness centre near his house. He wants to take up a personal loan of $50000 to help him with setting up the business and other initial costs. He intends to repay the loan in 5 years.

i) Bill gathers interest rate information from the 3 banks to help him decide from which one he is going to borrow the money. He summarises the results in a table.

ii) He then uses the annuity formula to check his a) monthly repayment and b) total repayment (this is to be calculated)

iii) He then summarises his findings in a 100-word report to justify his choice of the bank.

Monthly fee Annual fixed rate 12.45% pia Comparison rate 13.32% pa Application fee $150 ANZ BANK $10 per month, debited every three months until the loan is closed in ANZ system $10 $12 NA BANK WESTPAC 12.69% pia 11.99% pa 13.56% pia 13.15% p.a $150 $250 Monthly fee Annual fixed rate 12.45% pia Comparison rate 13.32% pa Application fee $150 ANZ BANK $10 per month, debited every three months until the loan is closed in ANZ system $10 $12 NA BANK WESTPAC 12.69% pia 11.99% pa 13.56% pia 13.15% p.a $150 $250