Q1. Dr Nick would like to buy a new car-Tesla worth s7,ooo, but he can only afford a payment of s900 per month.Tesla has offered Nick a seven-year loan with interest at 4% per year compounded monthly. Use this information to answer the questions that follow

How much money can Nick afford to borrow from Tesla? Identify the type of calculation you need to perform to answer this question. Is it Present Value. Future Value. Amortisation payment. or Sinking Fund payment? Then perform that calculation showing all your working out. ================================

For full marks, show the following steps: Modelling (4.5 marks)-list data given,identify unknown(s), identify relevant equation(s) Solving(2 marks)-find the required quantity Interpretina (0.5 mark)-aive the answerin words

Q2.what would Nick need to make in terms of a deposit to purchase the Tesla? How much interest will Nick pay in total if he takes out a loan offered by Tesla?

For full marks, show the following steps: Modelling (1 mark)-list data given,identify unknown(s),identify relevant equation(s) Solving(1.5 marks)-find the required quantities Interpreting(0.5 mark)-give the answer in words