You have received 500,000 as an unexpected heritage. Banks are aware of that, and they want to attract you as new customer/investor. You have to explain some financial concepts to your couple and take also some decisions about what to do with that money. Please prepare your responses and answer the following questions according to the following data given by the banks:

1 You have decided (together with your couple, of course) to buy a flat that costs 800,000. So, youll still need 300,000 more. If you go to the bank and borrow that amount, and you agree to pay that loan back in constant monthly payments during the next 10 years, what is the monthly amount youll have to pay if the interest rate associated to that loan is a 3% compounded monthly? (15p)

A)And how much youll have paid back in total? (5p)

2) Based on the previous exercise, if instead of paying that loan back in constant monthly payments to pay in back in constant yearly payments during the next 10 years, what will be the yearly amount youll have to pay back to the bank if the interest rate associated to that loan is now a 3% compounded yearly? (15p)

a)And how much youll have paid back in total? (5p)

b)In case you pay the loan back on a yearly basis, do you finally pay more or less than if you do it on a monthly basis? Why? (10p)