You need to show/write/explain inputs to your computations to get full credit. Upload your answers onto Blackboard by 3pm Question 1 (50 points): Refinancing a mortgage You purchased a home (Z+2) years ago for $200,000 and borrowed the entire amount from Broadway Bank at an APR of 6% with monthly payments. The original maturity of your mortgage was (30+X) years. a. (20 points) Draw a time line that depicts the cash flows from the mortgage payments from when you bought your home. Compute the outstanding mortgage amount today. Show the time line with the balance today, and ii. Give the inputs to your computations for full credit. b. (30 points) The financial crisis has reduced mortgage rates. Suppose you refinance your mortgage today with a mortgage maturity equal to the remaining time on your current mortgage at an APR of 3% and monthly payments. What is the present value of your savings if refinancing will incur closing costs of $2500