Question 5 Lucy wants to buy a car at the price of $400,000. She makes $80,000 down payment and the remaining amount is borrowed from the car dealer. For the borrowed money, the car dealer offers Lucy two choices: 1. A cash rebate of $30,000, and the remaining amount will be repaid in 48 equal installments at the end of each month at an annual 6% interest rate and the interest is compounded monthly. 2. No cash rebate. The borrowed money will be repaid in 48 equal installments at the end 1 of each month and there is no interest charged by the care dealer. Which choice is better to Lucy? Question 6 Robert takes out a mortgage on his house, borrowing $1,000,000 for 10 years at an annual interest rate of 6% with end-of-month equal installment repayments. 1. What is the monthly installment? 2. How much mortgage is still left after Robert has made 48 installments