Rachel and Jared have $20,000 to put towards their new home. Their dream home is a beautiful 3 bedroom and 2 bath in Durham. It costs $275,000. Jared is concerned about the monthly costs associated with the mortgage and about using all of their savings. Use this information to answer their questions a. Jared and Rachel were offered a 30-year mortgage, at 3.92% interest rate, from a lender. The estimated payment for the mortgage was 1300. Rachel thought the estimate was too high so she divided the price of the home by 360 (number of months in 30 years) and got 763.88. Explain to Rachel why the two values are different. b. A lender offers them a 30 year fixed mortgage of $255,000 at 3.3% interest rate. They choose to put the full $20,000 towards a down payment. Calculate the monthly payment. c. The same lender offers them a 30 year foxed mortgage of $275,000 at 4.3% interest rate. They choose to save the $20,000. Calculate the new monthly payment. d. Calculate how much they spend on each mortgage over the course of the loan. Which is the better option? Should they invest the $20,000 into their home or save it for emergencies? Explain your reasoning