4 3 You want to buy a house whose price is $100,000. You have enough savings to make 20% down payment. Your bank offers you a 20-year loan for the remaining amount at 8% p.a. Construct a loan amortization schedule for 8 years for the loan. The loan will be repaid in monthly installments. Also answer the following: Down Payment Loan Amount Loan Balance at the end of year 5 Loan Balance at the end of year 8 1. 1 1 10 H1 12 13 4 15 3 You are considering two investment options. Option A will pay nothing for three years, but then it will pay $30,000 per year for five years. Option B will pay $40,000 for three years and $60,000 in the fourth year. All payments are made at year-end. If your required rate of return on these investments is 8 percent annually, what should you be willing to pay for: Option A? Option B