Case study 2 "Mortgage amortization" Grace bought a new property for $680,000.00 with a down payment of 20%. For the remainder she signed a mortgage contract with CIBC bank at 5.15% compounded semi- annually ( fixed rate for 5 years) and monthly payments for 25 years. a. Find the regular monthly payment and the smaller final payment (rounded up to the cent ).[ 2 marks] b. Find the total interest (total cost of financing).[1 mark] c. Show the first three lines of the amortization schedule. [ 2 marks] d. Find the outstanding balance after 2 years. [ 1mark] e. Find the total principal and the total interest paid in the first 2 years. [2marks] f. Calculate Graces' equity after two years [ 2mark] g Suppose she decided to pay an extra $15000 after 2 years. How much interest would this save over the life of the mortgage? [ 3marks] h) After 3 years, interest rates drop to 3.92% compounded semi-annually. There is a penalty of 3 months' interest on the outstanding balance for early repayment or IRD - interest rate differential, which one is higher. Does it pay to refinance? ( Do not forget that you had a lump payment of $15,000 at the end of two years )[ 3marks]