Jill wants to buy a car but needs to calculate how much she can afford to borrow. The maximum she can repay is $2100 at the end of each quarter and the bank has indicated it will charge a fixed 7.1% p.a compounding quarterly. If she takes a loan for 6 years how much can she afford to borrow? (Do not use the $ sign or commas; include cents e.g 24500.09) Answer: A debt of $10,000 with interest at 8.8%p.a compounding quarterly is to be repaid with 10 equal end-of-quarter payments. How much interest is in the final instalment? (Hint use excel: You can either: First calculate the loan outstanding at the beginning of the last quarter. The interest can then be calculated as if you were setting up a loan repayment schedule for the final quarter. Use IPMT function)