Question 2: Submit the answers for the practice problems below. Please clearly show the five elements and other functions used (PV, FV, PMT, W, N, Amort, etc). 1. Assume that you have a 30 year fully-amortized fixed rate mortgage for your home. Your loan amount is $300,000 with a 3% annual interest rate. After 28 years, you would like to sell the property. What is your loan balance at the end of 28 years? Assume that you have a 30 year fully-amortized fixed rate mortgage for your home. Your loan amount is $300,000 with a 3% annual interest rate and your balloon payment is $50,000. What is your loan balance after 12 years? Assume that you have a 30 year fully-amortized fixed rate mortgage for your home. Your loan amount is $300,000 with a 3% annual interest rate. When you originate your loan, you have to pay an up-front fee of 3% (or 3 points of your loan amount). What is your APR? John takes a fully amortizing mortgage for $80,000 at 10 percent interest for 30 years, monthly payments. What will be his monthly payment? Dave wants to buy a house. To do so, he must incur a mortgage. A local lender has determined that Dave can afford a monthly payment of $600, principal and interest. If the current interest rate on 30-year, fixed rate mortgages is 9.5 percent, what is the maximum amount of mortgage that Dave could qualify for? Mike qualifies to borrow $120,000 on a mortgage at 9 percent for 30 years, monthly payments. a. What is his monthly payment? b. How much interest does Mike pay in the first month of the loan? c. How much interest does he pay in the first year of the mortgage? (1. If he decides to repay the mortgage at the end of year 3, what is the outstanding balance at that time? e. How much total interest does he pay over this 3-year period