A couple takes out a loan for $350,000 to purchase a house. They get an adjustable rate mortgage (ARM) that starts with an interest rate of 3.5% annual compounded monthly with a term of 30 years and they will make monthly payments. After two years the interest rate increases 6.5% annual compounded monthly and two years after that the interest rate increases to 8.5% annual compounded monthly. a) What are the loan payments for each interest period in this loan? b) What is the total interest paid on this loan?

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