After searching for several months, you found a home you'd like to buy for rental property. You plan to make an offer of $275,000. Since you don't want to tie up cash in one property, you plan to finance the purchase after a 15% down payment. You'd like to know what the monthly payments will be in order to set a monthly rental amount. You have narrowed your choices and have found a house worth $275,000 After talking to several banks that do business loans, you have decided this is the best offer: Terms:5 years. Can be renewed after 5 years pending loan committee approval. Amortized over: 15 years Since this is your first property for investment and your 15% down payment the interest rate on the terms are: Loan rate:8.75% What will be your monthly payments?

A. $2,999

B. $2,649

C. $2,336

D. $2,474