kate wants to buy an apartment and approaches the bank to borrow $681,000. The bank agrees and quotes a monthly repayment amount of $6,000 with no additional loan fees. If the bank's quoted annual interest rate is 5%p.a compounding monthly calculatethe number offullmonth-end repayments using Excel.

she also wants to buy a car but needs to calculate how much she can afford to borrow. The maximum she can repay each month-end is $620 per month and the bank has indicated it will charge a fixed 7.7% p.a compounding monthly. If she takes a loan for 3 years how much can she afford to borrow?