4. Suppose you have signed a sales contract to purchase a new home for $300,000. You contact two mortgage brokers, each of whom offers to finance the purchase. Loan A: The first broker offers a 30-year amortizing fixed-rate mortgage with payments due monthly at an annual interest rate of 6.5%. This broker assesses the value of the property at $290,000 and offers to finance it at a loan-to-value ratio of 80% with 3 discount points due on origination. Loan B: The second broker offered a 25-year amortizing fixed-rate mortgage with payment due quarterly at an annual interest rate of 6%. She assesses your home's value at the sales price of $300,000 and offers a loan-to-value ratio of 85% with 2.5 discount points due on origination. Answer the following: a) What is the down payment required on each loan? (3 pts) b) What is the periodic payment due on each loan? (4 pts) c) Finally, in order to compare the two, you decide to calculate each loan's effective annual interest rate. Set-up and briefly explain, but don't worry about solving, the formula (using summation notation) to determine the effective annual interest rate of the two loans. (7 pts)