Question: Calculate both sets of monthly payments on Interest Only Option

ABC Bank also offers you an interest only option. This option might be interesting as you just got your first job and you do not want to spend most of your income on repaying the mortgage. You will be paying only interest for the first five years, after that you will be paying interest and the principle for the remaining 25 years. You would make monthly payments over the full life of the loan. A down payment of $95,000 is to be paid on the day of purchase and the interest rate is fixed at 5% p.a. (compounded monthly)