The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet. A B D G H 1 Answer 2 3 Part 1) 4 Size of monthly payment if loan is repaid in 25 Years 5 6 Monthly Payment = Loan amount / Present value annuity factor (4.1%/12, (25*12)) 7 Monthly Payment = Loan amount /((1-(1+i)^-n)/i) 8 = 42000/((1-(1+(4.1%/12))^-300)/(4.1%/12)) 9 = 42000/187.4857 10 = $ 224.02 11 12 So the corr answer is $ 224.02 13 14 Part 2) 15 Size of monthly payment if loan is repaid in 10 Years 16 17 Monthly Payment = Loan amount / Present value annuity factor (4.1%/12, (10*12)) 18 Monthly Payment = Loan amount /((1-(1+i)^-n)/i) 19 = 42000/((1-(1+(4.1%/12))^-120)/(4.1%/12)) 20 = 42000/98.30804 21 = $427.23 22 23 So the correct answer is $ 427.23 24 c) Fill in the table below to compare the details of the two loan options. Show your work. (6 pts) 10-Year Loan 25-Year Loan Monthly Payment Total Amount Paid Total Interest Paid d) Based on the calculations in part (c), which loan option results in the smallest total amount paid, and by how much? Based on this, advise Suzy on how to pick between the two loans, and justify your advice. (8 pts)