You have just made an offer on a new home and are seeking a mortgage. You need to borrow $640,000.

a. The bank offers a 25-year mortgage with fixed monthly payments and an interest rate of 0.54% per month. What is the amount of your monthly payment if you take thisloan?

b. Alternatively, you can get a 10-year mortgage with fixed monthly payments and an interest rate of 0.38% per month. How much would your monthly payments be if you take this loaninstead?