Joanna is a civil servant who recently got a job promotion and decided to purchase a car through the bank valued at $2 million. She currently earns a monthly salary of $250,000 and wants to keep her monthly payment at below 25% of her salary due to budgetary constraints. She made inquiries with two banks who gave her the following information over the phone. CIBC offered her 90% financing with three years to repay at 8% compounded monthly. Scotiabank offered 100% financing based on her civil service membership with three years to repay at 12% compounded monthly. Payments would become due at the end of each month. Joana sought your assistance as a Finance student to help her understand the terms of the offer so that she can make her decision. Three months into the loan Joanna accepted a line of credit (like a credit card) with a $650,000 limit from her bank. There is no interest payment if the line of credit is not used. However, the bank charges 30% interest compounded monthly on any outstanding balance. The impact of covid-19 caused Joanna to lose her income temporarily for two months. She was unable to make her monthly payments. Joanna decided to borrow from her line of credit so that she does not default on her loan. A month later she is back at work and is hoping to settle the outstanding sum. c. Advise her what would be the Effective Rate of Interest (EAR) on the credit line? D. Recommend to Joanna the amount outstanding for the two months, including the interest for the credit line if she had gotten the loan from CIBC