The next four questions are related to your purchase of your first home for $500,000. You have just purchased the house and have put a 20% down payment, and will borrow the remaining amount. The 15-year fixed rate loan has an Annual Percentage Rate (APR) of 3.75%. You will make monthly payments for the life of the loan. Q4: Your effective interest rate is closest to which of the following? Select one: O a. 3.750% O b. 3.880% O c. 3.687% O d. 3.815% Q5. How much is your monthly payment? Select one: O a. $1,000 to $1,500 O b. More than $2,500 O c. Less than $1,000 O d. $2,000 to $2,500 O e. $1,500 to $2,000 Assume that you make payments for one year. How much have you reduced the principal balance that is, the amount that you owe on the loan? Select one: O a. $5,000 to $10,000 O b. More than $20,000 O c. $15,000 to $20,000 O d. $10,000 to $15,000 O e. Less than $5,000 After one year, how much have you paid in interest? Select one: O a. $10,000 to $15,000 O b. More than $20,000 O c. $15,000 to $20,000 O d. $5,000 to $10,000 O e. Less than $5,000