Financing Kate's Education At age 19, Katie Hicks is in the middle of her second year of studies at a community college in Atlanta. She has done well in her course work, majoring in pre-business studies, the currently has 3.75 rade point average. Katie lives at home and works part-time as afing clerk for a nearby electronics distributor Her parents can't afford to pay any of her tuition and college expenses, wirtually on her own astar as college goes. Katie plans to transfer to the University of Georgia next yeat (She has already been accepted. After talking with her counsere feels she wont be to hold down a part-time job and still manage to complete her bachelor's degree program at UGA in 2 years. Knowing that on her 22nd birthday, she will receive approximately 135.000 from a trust fund leher by her grandmother: Kate has decided to borrow against the trust fund to support hersell during the next 2 years. She estimates that she need 126,000 to cover ton room and board, books and supplies, travel, personal expenditures, and so on during that period, Unable to quality for any special loan programa, Katiews found two sources of single nunt loans, each requiring a security interest in the trust proceeds as collateral. The terms required by each potential ander are as follow Georgia State Bank willend 528,000 at peront discount interest. The loan principal would be due at the end of 2 years. n. National Bank of Atlanta will end $20,000 under a 2-year note. The note would carry a 5 percent simple interest rate and would also be due in a single payment at the end of years 1. How much would Katie receive an initiation proceeds under the Georgia State Bank icoan Round the anger to the nearest delle B. How much would Katie be required to repay at maturity under the Georgia State Banie foon found the war to the nearestar ment Activity: Chapter 07 Using Consumer Loans 2. a. Compute the finance charges on the loan offered by Georgia State Bank Bank. Round the answer to the nearest dollar. $ b. Compute the APR on the loan offered by Georgia State Bank Bank. Round the answer to 2 decimal places. % 3. a, Compute the finance charges on the loan offered by the National Bank of Atlanta. Round the answer to the nearest dollar $ b. Compute the APR on the loan offered by the National Bank of Atlanta. Round the answer to 2 decimal places. % c. How big a loan payment would be due at the end of 2 years? $ 4. Compare your findings in Questions 2 and 3, and recommend one of the loans to Katie. National Bank of Atlanta D Explain your recommendation The input in the box below will not be graded, but may be reviewed and considered by your Instructor. blank 5. What other recommendations might you offer Katie regarding disposition of the loan proceeds ? The input in the box below will not be graded, but may be reviewed and considered by your instructor blank