I want you to resolve the below question. Make calculations twice; one for 1 year car loan and the other for 2 years var loan.

Promotion: The bank declares that the interest for the car loan for that specific brand is XXX; not %1,2 which is for any other customer. How can the bank reduce the interest rate? Because the bank will collect %5 of the purchase price of the car from the car dealer. Hence, the bank will be eager to pursuit a lower rate.

Hint: Begin by calculating the monthly installments for any regular customer under normal conditions. Monthly interest rate for a car loan is 1,2%. To organize a promotion the car dealer will pay the bank %5 as commission for each car loan to be used to purchase the car from that specific dealer. What will be the interest rate under this condition?