Nathaniel wishes to purchase a new car, in 3 years time, which is currently selling for $28100. He has found an account paying 5.63% p.a. compounded monthly.

a) Use the TVM solver to calculate the amount Nathaniel needs to deposit into his account each month.

n=n=
i=i=
PV=PV=
PMT=PMT=
FV=FV=			Therefore, Nathaniel needs to put $$ into this account every month
C/Y=C/Y=
P/Y=P/Y=

b) Inflation is currently running at 3.07%p.a.. What would be the expected price of the car due to inflation in 3 years' time. Expected Price = $$ c) What should Nathaniel pay into his account to save for the expected price of the car due to inflation?

n=n=
i=i=
PV=PV=
PMT=PMT=
FV=FV=			Therefore, Nathaniel needs to put $$ into this account every month
C/Y=C/Y=
P/Y=P/Y=

Nathaniel's situation has changed and needs a car immediately. He will take out a loan from a bank with an interest rate of 11.11%p.a., compounded monthly over 5 years d) Nathaniel has saved $2810 for the car. How much money will he need to borrow from the bank? Amount to borrow = $$ e) What will Nathaniel's monthly repayments be? Monthly repayments = $$ After one year, Nathaniel has a pay rise and can now afford to increase his monthly repayments to $650, but the interest rate has also increased to 12.31% 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 Nathaniel to pay his outstanding debt, by making monthly repayments of $650 with an interest rate of 12.31% p.a. compounding monthly? Number of months to pay off the debt = months