Answer:
you forgot to add the options of the answer
<span>At simple interest:
10% = 5,000, 000 x 10/100 = 5,000,000 x (1/10) =$500,000
spread over 8 years = 8 x $62,500
monthly interest payment = $62,500/12=$5208.33
Smart decision: has to at least break-even, if not generate more than the total interest repayment. </span>