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4 points] You are considering purchasing a cottage in the Finger Lakes for use during...

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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: 4-30 Year(s) Interest Rate (APR) | 4.25% | 5.50% | 6.74% | 8.00% [4 points] Compute the monthly payment for each year. [1 points] Compute the total interest paid over the life of this loan. a. b

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