Q1. (10 Marks) Jalal Haseeb is considering taking out a loan to purchase a desk. The furniture store manager rarely finances purchases but will for Jalal as a special favor. The rate will be 10% per year, and because the desk costs $600, the interest will come to $60 for a 1-year loan. Thus, the total price is $660, and Jalal can pay it off in 12 installments of $55 each. 1. Use the interest rate of 10% per year to calculate the net present value of the loan. (Remember to convert to a monthly interest rate.) Based on this interest rate, should Jalal accept the terms of the loan? At which interest rate, his NPV will be zero? 2. Look at this problem from the store manager's perspective. Using the interest rate of 10%, what is the net present value of the loan to the manager? At which interest rate, his NPV will be zero