5. Suppose that you borrow a ten-year $100,000 loan to purchase a house and the annual interest rate is 7 percent, what should be your monthly payment of principal and interest for the next ten years? (Hint: Use annualized costing and treat annual payments as monthly payments.)

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Table 4.3 Cost Estimates for EOP and PMS Year 0 (the current year) 1 2 3 4 EOP ($) PMS ($) 1,500,000 750,000 100,000 300,000 100,000 300,000 100,000 300,000 100,000 300,000