5. [ Maximum mark: 11] Paul wants to buy a car. He needs to take out a loan for $7000. The car salesman offers him a loan with an interest rate of 8%, compounded annually. Paul considers two options to repay the loan. Option 1: Pay $200 each month, until the loan is fully repaid Option 2: Make 24 equal monthly payments. O Use option 1 to calculate (a) the number of months it will take for Paul to repay the loan. [3] (b) the total amount that Paul has to pay. [2] Use option 2 to calculate (C) the amount Paul pays each month. [2] (d) the total amount that Paul has to pay. [2] Give a reason why Paul might choose (e) option 1. [1] option 2. [1]