Question 5 [4 points). You are considering purchasing a cottage in the Finger Lakes for use during the summer months. The cottage costs $150,000. The bank has offered you the following terms for financing this purchase: 30 year adjustable rate mortgage (ARM) Down payment: 5% of purchase cost provided in cash by borrower Financed amount: 95% of purchase cost financed by the bank Interest rates projected to change as shown in table below: Year(s) 1 2 4-30 Interest Rate (APR) 4.25% 5.50% 6.74% 8.00% 3 (a) [2 points] Compute the monthly payment for each year. (b) (2 points] Compute the total interest paid over the life of this loan