1. Suppose a property you are seeking to purchase is valued at USD 200,000. You can take out a loan of 80 percent from the bank, with the market interest rate of 7.35 percent and 30 -year amortization. a. How much can you borrow from the bank? b. What would be your monthly mortgage payments? c. Suppose the interest rate drops to 6 percent. What would be the new monthly mortgage payments? d. Suppose the term of the loan is 25 years. What would be the new monthly mortgage payments? e. Suppose you sell the property after 5 years. How much debt would you still owe to the bank? f. Suppose your property appreciates 6 percent annually, compounded monthly, and you sell it after 10 years. Assuming there are no selling expenses, how much would you have gained financially from the purchase and sale of this property? g. Suppose you can only afford a monthly payment of USD 900 , but the seller is desperate to sell this property. The seller has already lowered the selling price to USD 180,000 . What is the minimum amount of rebate that the seller should provide to you in order to make you purchase the property? (Assume the market interest rate is 7.35 percent and the loan amortizes in 30 years.) 1. Suppose a property you are seeking to purchase is valued at USD 200,000. You can take out a loan of 80 percent from the bank, with the market interest rate of 7.35 percent and 30 -year amortization. a. How much can you borrow from the bank? b. What would be your monthly mortgage payments? c. Suppose the interest rate drops to 6 percent. What would be the new monthly mortgage payments? d. Suppose the term of the loan is 25 years. What would be the new monthly mortgage payments? e. Suppose you sell the property after 5 years. How much debt would you still owe to the bank? f. Suppose your property appreciates 6 percent annually, compounded monthly, and you sell it after 10 years. Assuming there are no selling expenses, how much would you have gained financially from the purchase and sale of this property? g. Suppose you can only afford a monthly payment of USD 900 , but the seller is desperate to sell this property. The seller has already lowered the selling price to USD 180,000 . What is the minimum amount of rebate that the seller should provide to you in order to make you purchase the property? (Assume the market interest rate is 7.35 percent and the loan amortizes in 30 years.)