c) Muthu had just acquired a car loan from a bank. The bank had agreed to lend him RM120,000 in exchange for a 5% down payment on the automobile. Muthu would have to pay monthly instalments to repay the debt at a rate of 3.0 percent per annum compounded monthly for 9 years.

i) Compute the amount of his monthly payment. (5 marks)

ii) Calculate Muthu's total interest assuming he keeps the loan till the agreed upon settlement term. (4 marks)

iii) Determine how much interest Muthu would save if he decides to pay off the debt entirely after 6 years. (6 marks)