A house can be purchased for 180,000, and you have 20,000 cash for a down payment. You are considering the following two financing options: bulletOption 1. Getting a new standard mortgage with a 8.5% (APR) interest and a 30-year term.bulletOption 2. Assuming the seller's old mortgage, which has an interest rate of 6.5% (APR), a remaining term of 25 years (the original term was 30 years), a remaining balance of 79,827,and payments of $539 per month. You can obtain a second mortgage for the remaining balance ($80,173) from your credit union at 11% (APR) with a 10-year repayment period.

(a) What is the effective interest rate of the combined mortgage?. (Round to two decimal places.)

(b) Compute the monthly payments for each option over the life of the mortgage. (Round to the nearest cent.)

The monthly payment for the second option over the first 120 months of the mortgage is ?(Round to the nearest cent..)

The monthly payment for the second option over the last 180 months of the mortgage is? (Round to the nearest dollar.)

(c) Compute the total interest payment for each option. (Round to the nearest whole number.)

The total interest payment under the second option is ?. (Round to the nearest whole number.)

(d) What homeowner's interest rate makes the two financing options equivalent? (Round to two decimal places.)