2. (Loan options) Option 1: First Mortgage loan for $380,000 with an effective interest cost of 9%. Option 2: First Mortgage loan for $350,000 with terms: 6.6%, 30 years & Second Mortgage loan for $30,000 with terms: 12% 10 years. The holding period is 6 years (note: The procedure varies slightly with the holding period selection). Mathematically demonstrate using PV analysis which option should be selected. Indicate whether option 1 or 2 should be taken. Show the table with labels when answering this question. A. Calculate Monthly Payments and Loan Balances for Option 2 B. Do Present Value Analysis (show equation and solution method) C. Decision: Which Option should be selected and reason for the selection. 2. (Loan options) Option 1: First Mortgage loan for $380,000 with an effective interest cost of 9%. Option 2: First Mortgage loan for $350,000 with terms: 6.6%, 30 years & Second Mortgage loan for $30,000 with terms: 12% 10 years. The holding period is 6 years (note: The procedure varies slightly with the holding period selection). Mathematically demonstrate using PV analysis which option should be selected. Indicate whether option 1 or 2 should be taken. Show the table with labels when answering this question. A. Calculate Monthly Payments and Loan Balances for Option 2 B. Do Present Value Analysis (show equation and solution method) C. Decision: Which Option should be selected and reason for the selection