Answer the questions below. Show all work. 1. Assume the above loan is interest only for the first three (3) years. a. What is the Annual Debt Service (ADS) in the first year? b. How much interest (cumulative) will have been paid at the end of year 3 ? c. How much principal will be due at maturity? d. How much interest will have been paid over the 10 year term? 2. Assume that the amortization is 25 years instead of 30 years (again interest only for the first three years). a. What would the ADS be in the first year? b. What would the ADS be in year 5 ? c. What would the balance of the loan be at maturity? d. How much more principal would be paid using a 25 year amortization versus 30 year amortization? 3. A homeowner obtains a $500,000.00 loan at an interest rate of 61/8% based on a 30 year amortization schedule. a. What is the monthly payment? b. What is the total amount of interest that would be paid over the life of the loan? c. Assume that after the 48th payment, the homeowner pays an additional $200.00 per month. At what month would the loan be paid in full? d. How many years sooner would the loan be paid off, versus just making regular monthly payments? e. How much interest would the homeowner save paying off the loan quicker than over the original term? Answer the questions below. Show all work. 1. Assume the above loan is interest only for the first three (3) years. a. What is the Annual Debt Service (ADS) in the first year? b. How much interest (cumulative) will have been paid at the end of year 3 ? c. How much principal will be due at maturity? d. How much interest will have been paid over the 10 year term? 2. Assume that the amortization is 25 years instead of 30 years (again interest only for the first three years). a. What would the ADS be in the first year? b. What would the ADS be in year 5 ? c. What would the balance of the loan be at maturity? d. How much more principal would be paid using a 25 year amortization versus 30 year amortization? 3. A homeowner obtains a $500,000.00 loan at an interest rate of 61/8% based on a 30 year amortization schedule. a. What is the monthly payment? b. What is the total amount of interest that would be paid over the life of the loan? c. Assume that after the 48th payment, the homeowner pays an additional $200.00 per month. At what month would the loan be paid in full? d. How many years sooner would the loan be paid off, versus just making regular monthly payments? e. How much interest would the homeowner save paying off the loan quicker than over the original term