HOUSE IN EMIRATES HILLS, DUBAI Tareq is about to make his dream of a house of his own come truc For years he has been saving for this moment and now, after months of searching for a suitable house for his family of four, he has found a spacious three-bedroom detached house with a little garden just outside of Dubui and is about to sign the purchase contract. He feels comfortable with the financing arrangement he has made. Requiring a 10 nenent down payment on the AEDI.500.000 house. Tareq's bunk grants him a 3u-ycar loan (mortgnge wath lie monthly payments at an annual percentage rate (APR) of 9 percent. He knows that inter- est will be compounded monthly. Tareq brought you along to answer some of his last minute questions In particular, Tareq would like to know 4. The portion of the monthly payment that goes towards principal reduction versus interest coverage (use the first payment, the payment at the end of year 10, the payment at the end of year 20, and the very last payment as an example), and S. How much interest he would have to pay in a given year (use the first and the last year as an example) Alternatively, Tareq could borrow at a flexible rate starting at 8.25 percent per year based on a 15 percent down payment. You believe that interest rates will remain unchanged for several years but eventually will go up More specifically, you estimate the resulting annual mortgage rate as follows: 1-5 6-10 11-16 17-23 24-30 8.25% 8.40% 8.85% 9.60% 10.20% 6. Determine for each period the resulting monthly mortgage payments 7. Over the full 30-year term, which mortgage would result in the lower total interest payments S. Overall, would you advice Tareq to finance his dream house with a fixed or flexible mortgage? Explain