(4)(40 points) You are thinking of buying a house whose price P = $240,000 at annual interest rate r = 3%. (a) If you were in a Simple Interest situation what would the annual interest be? What would the monthly interest be? (b) If you get a 30-year fixed rate mortgage, what would your monthly payment be? What is the total amount you pay? (c) If you make payments of $1200 per month, how long will it take to pay off the loan? What is the total amount you pay? (d) Same as (c) with payments of $800 per month. (e) Compare your answers to (b,c,d) - what do they suggest as a payoff strategy? (f) Describe the future of this loan if you make payments of only $600 per month? (g) Describe the future of this loan if you make payments of only $500 per month? For Honors 195H class: What example of unwise financial engineering, contributing to the Crash of 2008, do these calculations illustrate