2. (20 points) You took a $500,000,10-year, 5\% APR balloon loan with your annual payment of $8,000. - You are considering refinancing your loan at the end of Year 6 as the interest rate dropped to 4%. Although the refinancing cost is $15,000, you can keep the same feature of the balloon loan with an annual payment of $8,000 for the remaining loan period (except for the last year). Should you refinance the loan? 1) (4 points) Complete the amortization table of the original loan. 2) (4 points) What is the contractual value of the loan at the end of Year 6 ? 3) (4 points) What is the market value of the loan at the end of Year 6 ? 4) (4 points) Complete the amortization table of the new loan. 5) (4 points) What is the gain (or loss) from refinancing at the end of Year 6 ? Complete the table of annual savings and calculate the gain (or loss) from refinancing. Should you refinance the loan