The apartment was owned and had been promoted by a state-owned construction company and was offering two alternatives:

Option A: renting the apartment with a perpetual contract, meaning forever. The Marconi family thought that could be a good solution for them.

The family was very happy living in that area, and they had the chance to live there forever at an offered price of 1.600 the first month, and the rent price will be growing by a 0.1% monthly.

At the same time, they were not forced to ask for a loan, which represented a heavy burden of the Marconis.

Option B: consisted of acquiring the property with a mortgage scheme for 40 years. The total price of the apartment is 800.000. The family can pay an initial down payment of 200.000 and the rest (600k) to be paid in constant monthly payments with an annual interest rate of 2.4% compounded monthly.

Mrs. Marconi establishes the maximum amount they can pay monthly as 2.000.

1. 1) In case of taking option A, what is the amount of the monthly payment the Marconi family should pay for 40 years? (only the amount to be paid that month) Show the calculations and explain why. (10 points)