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9. [Maximum 21 marks] In this question, give all answers to two decimal places. Jamal wants to purchase a new car with a price of JOD 14 000, but cannot afford the full amount. The car dealership offers two options to finance a loan. Option : A6 year loan at a nominal annual interest rate of 14 % compounded quarterly. No deposit required and repayments are made each quarter. (a) Find the repayment made each quarter. (ii) Find the total amount paid for the car. (ii) Find the interest paid on the loan. 7] Option B: A 6 year loan at a nominal annual interest rate of r % compounded monthly. Terms of the loan require a 10% deposit and monthly repayments of JOD 250. (b) () Find the amount to be borrowed for this option. (i) Find the annual interest rate,r. [5] (c) State which option Jamal should choose. Justify your answer. [2] Jamal's car depreciates at an annual rate of 25 % per year. (d) Find the value of Jamal's car six years after it is purchased. [3] Jamal chooses option B. The car dealership invests the money Jamal pays as soon as they receive it (d) If they invest it in an account paying 0.4 % interest per month and inflation is 0.1 % per month, calculate the real amount of money the car dealership has received by the end of the 6 year period. [4]

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