6. An investor has a choice of two accounts. Choice A is an account compounded monthly with a stated annual rate of 5%. Choice B is an account advertised having an APY of 5.2%. Which is the better choice for the investor and why is it better?

7. (a) A family buys a condominium for $160,000. A down payment of $30,000 is made, and $130,000 is

borrowed at 5% compounded monthly. The loan is to be paid off over the next 20 years. Determine the monthly payment.

(b) How much interest is paid over the life of the contract if monthly payments are made as scheduled?

(c ) How much of the $130,000 is still owed after making payments for five years?