2. 1).Amortization: The price of a home is $250,000. $50,000 is your downpayment while you borrow the other $200,000. Assume a 5%annual rate com-pounded monthly.

a). Find the difference in total interest paid for 30 year and 15 year amortization sched-ules.

b). Seven years after starting the 30 year loan, you decide to re-finance the remainingbalance of the loan at 4.2% for 15 years. In addition, you pay an extra $100 on your monthly payment. What is the total amount you pay for the house after theloans are paid?