Case 1:

Ali was desperate. He borrowed $600 from a pawn shop and understood he was to repay the loan starting next month with $100, increasing by $10 per month for a total of 8 months. Actually, he misunderstood. The repayments increased by 10% each month after starting next month at $100.

1. Draw a cash flow diagram for the amount that he thought he was to pay, and what he actually will pay.

2. Use an Excel spreadsheet to calculate the monthly amount that he thought he was to pay, and what he actually will pay in two different columns. Join a screenshot of Excel spreadsheet to your answer.

3. Calculate how much interest he has paid vs what he taught he will pay.