You have just contracted to purchase a house and will seek $100,000 in financing. You go to several banks. Bank 1 will lend you 100,000 at the rate of 5.078% amortized over 30 years with loan origination fee of 1.75%. Bank 2 will lend you 100,000 at the rate of 4.310% amortized over 15 years with a loan origination fee of 1.5%. Bank 3 will lend you 100,000 at the rate of 5.199% amortized over 30 years with no loan origination fee. Bank 4 will lend you 100,000 at the rate of 4.840% amortized over 15 years with no loan origination fee.

a) Which bank's loan will result in the smallest montly payment? SHOW ALL WORK

b) Which bank's loan will result in the least amount of interest paid? SHOW ALL WORK.