1. You are considering taking out a $120,000, 30-year mortgage loan to finance your dream house. The annual interest rate on the loan is 3%, and payments on the loan are made annually at the end of each year. a. What is your annual payment on the loan? b. What is the principal payment (amortization of the loan) at the end of 12th year? c. What is the remaining balance of your mortgage after 15 payments? d. After 15 years the annual interest rate declined to 2%. 1. Assuming there are no refinancing fees, what is your annual payment if you refinance your mortgage at the new low rate for the next 15 years? Bonus question: Assuming the bank charges refinancing fees, what is the max penalty that you are willing to pay