(Mortgage options) Mark , a successful CEO, is considering taking a $150,000 loan from Private Bank (PB) to buy a flat. Knowing that Mark has a saving account with a $75,000 balance, and 5% annual interest, compounded monthly, PB gave Mark the two following payment options. (I) Mark pays back the whole loan over 20 years in equal monthly payments at an interest rate of 6% per year, compounded monthly. (II) Mark pays the bank a down payment of $50,000 from the saving account. He then pays back the remaining loan amount ($100,000) at a reduced interest rate of 1.5% per year, compounded monthly, in equal monthly payments also. Both options have a grace period of two months. The first monthly payment is three months after receiving the loan. However, interest is applied during the grace period. (a) What is Marks monthly payments under options (I) and (II)? (b) Which loan option should Mark take, (I) or (II)?