You are working for a local company that intends to finance a vehicle for its CEO. The price of the car is Rs.4,000,000. You company has decided to put a down payment of 1320000, and rest will be financed from HBL. Bank has offered 12% APR and you are planning to finance the car for 5 years making 60 monthly payments. a) Calculate monthly payment for your financing. (3 marks) b) Bank has asked you to make payments at the beginning of every month. How much APR bank is actually charging, if payments are calculated on end-of-month basis and paid at the beginning of all the months? (4 marks) c) How much is the effective annual rate on the deal making payments at the end of the months, and at the beginning of the months? (4+4 marks) d) You are bound to buy insurance through bank's recommended insurance company which is offering you 5% annual premium on book value of car depreciable at 10% per year. If you make first year payment upfront and built in every subsequent years' payment in prior year's monthly payment, how much is your monthly payment for all 5 years? (Note: you are not planning to buy insurance for Year 6, so there is no insurance premium to be added in payment of year 5). (6 marks) e) How much total interest you are paying to HBL over 5 years on the deal