Edward wishes to purchase a new car, in 4 years' time, which currently sells for $48000. He has found an account paying 5.5% p.a. compounded monthly a. Use the graphics calculator to calculate the amount Edward needs to deposit into his account each month Calculator input: n= = PV = PMT = FV = P/Y = CIY = Therefore, Edward needs to put $ into this account every month. b. Inflation is currently running at 2.8% pa. What would be the expected price of the car due to inflation in 4 years time? Inflation = C. What should Edward pay into his account to save for the expected price of the car due to inflation? n = i= PV = PMT = FV = P/Y = C/Y = Edward's situation has changed and needs a car immediately. He will take out a loan from a bank with an interest rate of 14.5%p.a., compounded monthly over 5 years d. Edward has saved $6000 for the car. How much money will he need to borrow from the bank? Amount borrowed = e. What will Edward's monthly repayments be? Monthly Repayments = $ After one year, Edward has a pay rise and can now afford to increase his monthly repayments to $1150, but the interest rate has also increased to 14.2%p.a. compounding monthly. f. How much is the outstanding debt after 12 months? The outstanding debt is g How long (in months) will it take for Edward to pay his outstanding debt, by making monthly repayments of $1150 with an interest rate of 14.2%p.a. compounding monthly? Number of months to pay off the debt= $