Question 7 If you don't repay a loan, and a lot of time passes, the debt can grow to unmanageable proportions, as happened to an unfortunate borrower in Melbourne. A grandmother has been forced to put her house up for sale after she ended up owing a massive $83 000 -on a $15 000 loan. Andrea lane, 57, borrowed the money in 2002 to pay for her father's funeral and to buy a new oven for her Clayton home. But she could not meet the cost of the loan and 18 years later, the amount she owed had grown to $83 000 ... Andrea said: 'I borrowed the money when I was grieving for my father. I just signed the papers.' a) Based on original loan of $15 000, calculate the monthly repayments to be repaid over 5 years. Assume an interest rate of 25% p.a. Andrea can afford to pay $600 per month into the loan, and she has been able to negotiate a new interest rate of 8% p.a. b) How long would it take Andrea to repay the loan? c) If she cannot afford to increase her current repayments, and is unable to negotiate a better interest rate, recommend a strategy to reduce the total length of time to repay the loan? Based on this strategy, how much interest would she save? (1 + 2 + 2 = 5 points)