2. Pay the loan off in its entirety after five years: Call this option B. (a) Determine the present value of the interest payments with option B. (10 pts.) (b) Determine the present value of the principal repayments with option B. (10 pts.) Under which loan arrangement you would you pay the most interest (adjusted by the present value)? (5pts.) Under which loan arrangement you would you pay the most principal (adjusted by the present value)? (5pts.) Explain why you would expect the present value of the interest and principal differ between these two loan arrangements? (5pts.)