Problem
1. What will be the monthly repayments on a loan of £6,500 taken out over 5 years at a monthly interest rate of 1.2%?
2. You wish to buy a car priced at £6,000 by putting down a cash deposit of £2,000 and borrowing £4,000, the loan being paid back in monthly instalments over 2 years. How much will you have to budget to pay out of your salary if the monthly interest rate is 1.4%?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.