5. Suppose you are buying your first house for $350,000.00 and are making a 20% down payment. You have arranged to finance the remaining amount with a 30-year monthly payment amortized mortgage at a 5.75% nominal interest rate. What will your monthly payments be? a. $1,634.00 b. $1,900.88 c. $1,255.93 d. $1,962.70 e. $2,024.02

8. Based on the information of Q5, suppose the bank offers you an APR of 4.75% with 1.5% points on this mortgage. Would you accept this option if you plan to upgrade to a better home after 7 years of living in your $350,000 house? Show your work.