Question $1(6$ marks$)$: John has just obtained a variable$-$rate mortgage of $550,000$ to help finance the purchase of his primary residence priced at $700,000.$ The mortgage has a rate j$12=5\%(12$ compounding frequency$),$ amortized over $30$ years with biweekly payment $($hint: how many payments a year?$).$ The term is $5$ years. $($a$)(2$ marks$)$ How much is the PMT$?($b$)(4$ marks$)3$ years into the term, he wants to do a cash$-$out refinancing $($obtain a new mortgage of a larger size from B to pay back the old mortgage from A$.$ This way he can have extra cash to pursue a rental property$).$ Assume B agrees to give him a new mortgage which is equal to $80\%$ of the current price of his house. Note that housing price has been rising $5\%$ per year since purchase. If he goes ahead with the refinancing, how much extra cash he would have? Hint: extra cash $=$ new mortgage size $-$ OSB of the old mortgage