Vincent is going to purchase an apartment in Shatin and the current property price is $7...

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Vincent is going to purchase an apartment in Shatin and the current property price is $7 million. Meanwhile, Vincent has $3 million in his saving account. A) If the loan-to-value ratio is 60%, what is the maximum amount that Vincent can borrow from a licensed bank? However, since Vincent has saving, what is the minimum amount he needs to borrow? (3 marks) B) DBS is willing to lend Vincent a fully-amortizing mortgage loan for 25 years (base on the minimum amount you calculated in (A)) at "Prime rate minus 2.7%". If the current prime rate is 5.25%, find his monthly payments. (3 marks) C) Suggest and explain one reason for Vincent using an adjustable rate mortgage instead of a fixed rate mortgage. (3 marks) D) However, Vincent wants to borrow another $300,000 to furnish and decorate his new home. DBS agrees to lend him a bigger loan (i.e. the minimum amount + $300,000) but the interest rate charged will be calculated on "Prime rate minus 2.4%" instead. Find Vincent's monthly payments for the bigger loan. (2 marks) E) Compare the two loans mentioned in (B) and (D), what is Vincent's incremental cost of borrowing the extra $300,000? (5 marks) F) Vincent believes the value of his property will grow by 4% a year. If he plans to sell his property after 5 years, what will be the expected selling price and his loan balance at that time? (4 marks) Vincent is going to purchase an apartment in Shatin and the current property price is $7 million. Meanwhile, Vincent has $3 million in his saving account. A) If the loan-to-value ratio is 60%, what is the maximum amount that Vincent can borrow from a licensed bank? However, since Vincent has saving, what is the minimum amount he needs to borrow? (3 marks) B) DBS is willing to lend Vincent a fully-amortizing mortgage loan for 25 years (base on the minimum amount you calculated in (A)) at "Prime rate minus 2.7%". If the current prime rate is 5.25%, find his monthly payments. (3 marks) C) Suggest and explain one reason for Vincent using an adjustable rate mortgage instead of a fixed rate mortgage. (3 marks) D) However, Vincent wants to borrow another $300,000 to furnish and decorate his new home. DBS agrees to lend him a bigger loan (i.e. the minimum amount + $300,000) but the interest rate charged will be calculated on "Prime rate minus 2.4%" instead. Find Vincent's monthly payments for the bigger loan. (2 marks) E) Compare the two loans mentioned in (B) and (D), what is Vincent's incremental cost of borrowing the extra $300,000? (5 marks) F) Vincent believes the value of his property will grow by 4% a year. If he plans to sell his property after 5 years, what will be the expected selling price and his loan balance at that time? (4 marks)