1 Ann got a 10 year Fixed Rate Mortgage for $100,000.

The loan has constant annual payments and an annual interest rate of 5%.

There are no closing costs.

Suppose Ann prepays the loan in year 4.

Write the NPV of Anns Mortgage (from Anns perspective) for an annual discount rate in each of the following cases.

Note: the answer must take the form

Note: only include one cash-flow for each time period

1a Fully Amortizing

1b Partially Amortizing where the final balance is

1c Interest Only

1d Negatively Amortizing where the payment is

1e Negatively Amortizing where the payment is

2 Compute the IRR for each loan above

2a

2b

2c

2d

2e