Question $3(25$ points$)$

I would like to buy a Cessna Citation M$2$ private jet, which costs $$4,700,000.$ I am

going to get a loan to make this purchase but I won't agree to any terms that force

me to spend more than $$1,000,000$ in interest over the life of the loan $($I am

simultaneously very wealthy yet also a bit of a penny pincher$).$ I am approved for an

eight year aviation finance loan at $6\mathrm{.}4\%$ APR, compounded monthly. I am fine with

any monthly payment amount. Rounded to the nearest dollar, how large of a down

payment should I make so that I can purchase this jet under acceptable terms?

$$985,284$

$$1,340,283$

None of these

$$1,133,125$