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Thinking of buying a $60,000 car, you browse through a finance brochure offering amortising loans....

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Thinking of buying a $60,000 car, you browse through a finance brochure offering amortising loans. You intend to finance your car purchase purely through a loan. The loan is for a term of 7 years, with monthly repayments, costing 6% p.a. The amount of each repayment can be worked out through the ordinary annuity formula: PMT | PV PM ( ) (1+r)" The correct values to substitute into this formula are: PV = r = n = PMT = While you are reading the brochure, salesman comes over and slickly persuades you to take a car loan that involves fortnightly repayments of $900 over 7 years which costs 6% p.a. on the amount borrowed. The amount borrowed can be worked out with the same ordinary annuity formula: PMT PV = ? dtri ) ) (1+r)" What are the correct values to substitute into each variable? PV = n = , PMT = Calculate the amount of money that you have borrowed using the loan the salesman persuaded you to take: fortnightly repayments of $900 over 7 years which costs 6% p.a. on the amount borrowed. How much more have you borrowed compared to the cost of the car? Enter your answer without $ or, and to 2 decimal places. e.g. 2000.01 or 1400.22

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