Question 2 (Consumer loan) Martina Williams values education and, therefore, wants to buy a new computer for $3,000 when she begins her study at university. She has no money now but can afford to put $200 a month towards the computer. She has decided to buy it by borrowing money now and will start repayments next month. She has two loan options: 1) Wonky credit card which charges 13% p.a. compounded daily with flexible repayments above a $70 monthly minimum amount. 2) Bozo consumer loan which charges 9% p.a. compounded monthly, with fixed monthly repayments and a 2-year term. REQUIRED: a) How much are her monthly repayments with the Bozo loan? b) Calculate the Equivalent Annual Rate (EAR) for both products. c) Which loan do you recommend to Martina and why