Mariam's family business intends to purchase a new building to construct a salon for $8,700,000. Lloyds bank offers you a 20-year loan with equal monthly payments and an interest rate of 5.5% per year. Lloyds bank requires that the firm pay 20% of the purchase price as a down payment. This means Mariam family business can borrow only 80% of the building value. Today, Mariam family business only $250,000 in their savings account, and Lloyds bank can give you 2% return per year on your savings. (a) What is the reason why banks normally require any borrower to pay 20% of the purchase price as a down payment? (b) Demonstrate the importance of the effect of compounding by estimating the amount you would have saved with your savings after 20 years. (c) If instead of paying the loan over 20 years, you decide to pay it completely over 10 years, would your monthly payment double? Show your workings