5. Consider the following advertisement seeking to sell a beachfront house at Daecheon Beach in the westem cost of Korea. 80% Financing 2% interest!! 20% Down Payment. Own a Beach House for only $525,000 with a 30-year variable-rate mortgage. We're providing incredible terms: $420,000 mortgage (30 years), year 1 at 2%, year 2 at 3%, year 3 at 4% and years 4 through 30 at 5%. a) Compute the monthly payments for each year. b) Calculate the total interest paid over the life of the loan. c) Determine the equivalent single-effective annual interest rate for the loan. d) Wooroo Bank offers another financing option with the same loan period for the beachfront house. The Wooroo Bank option provides an annual effective interest rate of 4.3%. Assuming that you do not have any cash shortage problem during the loan period would you accept the Wooroo Bank option or stick to the original option? Explain your decision. 5. Consider the following advertisement seeking to sell a beachfront house at Daecheon Beach in the westem cost of Korea. 80% Financing 2% interest!! 20% Down Payment. Own a Beach House for only $525,000 with a 30-year variable-rate mortgage. We're providing incredible terms: $420,000 mortgage (30 years), year 1 at 2%, year 2 at 3%, year 3 at 4% and years 4 through 30 at 5%. a) Compute the monthly payments for each year. b) Calculate the total interest paid over the life of the loan. c) Determine the equivalent single-effective annual interest rate for the loan. d) Wooroo Bank offers another financing option with the same loan period for the beachfront house. The Wooroo Bank option provides an annual effective interest rate of 4.3%. Assuming that you do not have any cash shortage problem during the loan period would you accept the Wooroo Bank option or stick to the original option? Explain your decision