Consider the following advertisement seeking to sell a beachfront condominium.

- 95% Financing 8.125% interest!!

- 5% Down Payment, Own a Western-Beach Condominium for only $ 100,000 with a 30-year variable-rate mortgage.

- We're providing incredible terms: $ 95,000 mortgage (30 years), year 1 at 8.125%, year 2 at 10.125%, year 3 at 12.125% and years 4 through 30 at 13.125%

a) Compute the monthly payments for each year.

b) Calculate the total interest paid over the lif of the loan

c) Determine the equivalent single-effective annual interest rate for the laon.