Question: Chloe wishes to obtain a loan to purchase a house. Her gross annual income is 114,000. The bank will allow her to spend a maximum of 20% of this income on her loan repayments. The interest rate on the loan is 3.84%. The bank allows loans of 20, 25 or 30 years. Repayments are made monthly and interest is charged on the same day of the month as the repayments are made. In order to save a deposit for her home she has been depositing 2,850 per month of into an account that pays an interest rate of 1.68%. Her first deposit into this account was exactly 9 years ago. She has made all of her monthly deposits on the same day of the month. which is also the day that the bank pays interest. Today, instead of making her regular deposit, Chloe is going to close the account and withdraw all the money she has saved. What will be the total she will withdraw (including all of the interest)? What is the maximum amount of money that Chloe can borrow? The bank decides to offer a discount on its home loans. The discount involves an interest rate of 2.76% for the first 4 years. with the interest rate for the remainder of the loan reverting to 3.84%? What is the maximum amount of money can Chloe borrow in these circumstances? _ Note 1: All parts of this question should be answered to the nearest cent (ie 2 decimal places) Note 2: This question requires a lot of accuracy. Make sure that you use enough significant figures in all of your calculations so that you get the correct answer. You would not be happy if the bank calculated the balance of your bank account incorrectly.

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