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Question Four Show all your workings Peter is in desperate need of 400 cash which he will pay back in two weeks. He goes to

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Question Four Show all your workings Peter is in desperate need of 400 cash which he will pay back in two weeks. He goes to a pay-day loan company, Fast-Cash, who (for 2-week loans) charge 10 per 100 borrowed; there are no other fees. Calculate the APR that would be advertised on this loan. (6 marks) (b) Claire decides to finance a car costing 35,000 using a Personal Contract Plan (PCP) with a 4.9% APR. She agrees to the minimum PCP deposit and term. If the guaranteed minimum future value is 15,000, calculate Claire's monthly payments. (11 marks) (c) Alice is 30 years old today and has decided to start a defined contribution pension at work. She will be contributing (including employer contributions) 300 at the end of every month into the pension, increasing in line with his salary, and her employer matches employee contributions 100%. She expects her salary to increase 3.5% a year (assume he receives the raises monthly) and she believes that she can achieve an annual return of 7.0% return in her pension account. What will be the size of Alice's pension pot when she retires in 35 years? (13 marks) (Total: 30 Marks)

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