QUESTION 3 (43 marks) The Honda Civic Hybrid is a variation of the Honda Civic with a hynd electric powertrain Honda introduced the Civic Hybrid in Japan in December 2001. In the United States, it was the first hybrid automobile to be certified as an Advanced Technology Partial Zero-Emissions Vehicle (AT- PZEV from the Califomia Air Resources Board The Civic Hybnd uses an Integrated Motor Assist hybrid system similar to that of the Honda Insight Early models from 2001 to 2005 used a 5-speed manual transmission whereas later models feature a continuously variable automatic transmission. The Civic Hybrid was only marketed in sedan configurations until 2013, when Honda introduced a hatchback version In February 2009 Honda reported that since 2001 they had sold more than 255,000 Civic Hybrids, including more than 190,000 units sold in North America. For a time, the Civic Hybrid was the second best-selling hybrid electric car in the U.S. Honda Malaysia offers finance packages to its new car purchasers. The new car market is highly competitive, and Honda Malaysia management think that they could boost sales of the Honda Civic hybrid if they offer finance at an annual interest rate of 3%.compounded monthly. However, Honda Malaysia pays its bark 4.5% per annum, compounded monthly, for the funds required Therefore, the price of the Honda hybrid needs to be carefully determined to compensate for this discrepancy in interest rates. A buyer bought a Honda civic hybrid 1.5L at the end of 2009 at a price of RM 116311.50. The buyer paid a down payment of RM 6300 and the remainder was financed at 3% per annum compounded monthly. He started paying his first installment in January 2010. a) The buyer pays equal monthly payments over 5 years to discharge the debt. Calculate the size of each monthly repayment (4M) ii. By using EXCEL, set up an amortization schedule (table) for the 5 years loan Print and scan this table together with your answers for submission. (5M) Calculate what the monthly repayments would be if the loan was interest-free and compare. Does your answer seem reasonable? (4M)