Not yet adver 1 Marked out of 15.00 Paton A person is facing financial hardship and needs to come up with $1.600 immediately to pay for necessary expenses. Unfortunately this person has no emergency savings and bad credit history in short, bad with money). To go through this challenge, a subprime loan is obtained according to the following contract terms 1. Barrow $400 for only $5 per week 2. Can bonow multiples of $400. 3. At the end of the month pay back $420 4. If the $420 is not paid then this amount becomes new debt and a new monthly cycle starts over with the balance then being $420 5. Each new monthly cyde will add a monthly interest of 5.0% This "hatting debt mechanism described in articles 4 and 5 can be repeated infinitaly. This person borrowed $1.600 according to the previous contract terms (e) How much should be paid back if the loan is repaid after one month? [b] What is the monthly interest rate implied in article 3 in the contract? Id How much should be paid back if the loan is repaid after 3 months? [d] What is the annual effective interest rate on this loan? Hint: You need to read carefvity article 3 to decide on your own how often compounding takes place. The question already gives you the compounding period indirectly