2022 SJI P2 Q4

Mr. Jay places a \(30\%\) deposit for a car and takes out a loan of \(\$80\,500\) from a bank for the remaining amount. The bank charges an annual interest rate of \(3.2\%\) compounded monthly and Mr. Jay makes a payment of \(\$x\) to the bank at the end of each month.

1. Find the minimum value of \(x\), to the nearest integer, if he wants to finish repaying the loan within \(7\) years.[3]
2. Write down the purchase price of the car, to the nearest dollar.[1]
3. If the value of the car depreciates to half its original value at the end of the fifth year, find the annual depreciation rate of the car. State an assumption made in your calculation.[3]