2. Amortization period 25 years, mortgage amount $500,000, nominal interest rate 6% compounded monthly.

a) If the homeowner makes 24 payments each year (twice a month instead of monthly), how much is each payment? Do they owe more or less at the end of 5 years? How much?

b) If the amortization period is increased to 30 years instead of 25 years, what happens to the monthly payment? Do they owe more or less at the end of 5 years? How much?

c) If the homeowner increases their down payment by $20,000 (so the mortgage loan is now for only $480,000), how much is their monthly payment (25 year amortization)? How much do they still owe at the end of 5 years?