You have decided to buy a 1,500 square-feet house in Denton, close to a good public school. The average price in the area is $190 per square feet. The bank will finance 90% of the house value, so you need savings for the 10% down payment. You sign a 10-year 2/1 adjustable rate mortgage (ARM), which carries a 4% fixed rate for the first 2 years, and then (after 2 years) is adjusted to the 1 -year LIBOR +0.75%. Compute your monthly payments in 2 years (month 25) if the LIBOR is 4.5% Mualtple Choice $2,723 $2,455 $2,625 $2,388