Jack and Diane's have received one more offer for a home mortgage. This option - Option...

  

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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 4.25% 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. n 1 2 3 i (APR) 4.25% 4.25% 4.25% 4 5 4.75% 4.75% 6 7 4.89% 4.89% 5.10% 8 9 5.10% 10 5.10% a) [3 points] Find the monthly payment for each of the 10 years of this adjustable rate mortgage. 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 4.25% 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. n 1 2 3 i (APR) 4.25% 4.25% 4.25% 4 5 4.75% 4.75% 6 7 4.89% 4.89% 5.10% 8 9 5.10% 10 5.10% a) [3 points] Find the monthly payment for each of the 10 years of this adjustable rate mortgage.