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One of the largest mine truck manufacturers promotes the sale of a line of 240 Ton...

One of the largest mine truck manufacturers promotes the sale of a line of 240 Ton overhauled trucks as follows:

Cash price: $3 million, or a down payment of $ 500,000 with 6 yearly payments of 500,000

Chiquitita Mine bought one truck and made a down payment of $ 1 million. The manufacturer charged the same interest rate used in his advertised offer. How much will Chiquitita pay each year for 6 years? What effective interest rate is being charged?

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