$[4$ points$]$ Jack and Diane's have received one more offer for a home mortgage. This option $-$

Option C$,$ is described below. The purchase cost $($$$212,400)$ of the condo will remain the same and

the time they expect to remain in the home $(10$ years$)$ remain the same. Details of this new loan

option are described below.

Option D: A $30$ year adjustable rate mortgage $($ARM$)$ in which the initial interest rate of $4\mathrm{.}25\%$

APR for the first three years of the loan. After this initial fixed rate period the interest rate will

change as described below. This option will require a $22\%$ down payment, which will again be

paid from their savings. The $$5500$ in closing costs and fees can once again be included in the

loan finance amount. Payments will once again be made on a monthly basis.

a$)[3$ points$]$ Find the monthly payment for each of the $10$ years of this adjustable rate mortgage.