Suppose that a lender offers a fixed rate mortgage at 9.5% for 30 years with monthly payments. You wish to borrow $75,000. What is your monthly payment and the loan balance at the end of two years?
a. $7,626 monthly payment; $73,950 balance
b. $635 monthly payment; $70,532 balance
c. $635 monthly payment; $74,029 balance
d. $2,818 monthly payment; $70,532 balance