5. (20 points) You purchased a $300,000 apartment with a down payment in cash of 20% of the purchase price. The remaining 80% was financed with a 2-year mortgage (equal payment) loan with monthly payments at 12% APR. 1) (5 points) Complete the amortization table of the original loan without using IPMT and PPMT functions. 2) (5 points) Break down the 10th payment to the principal and interest portion using PPMT and IPMT functions. After your 7th payment, your bank advisor makes you an offer of refinancing your mortgage loan at 8% APR with the equal monthly payments for the remaining period with a refinancing fee of $4,000. Should you accept the offer? What is the expected gain (or loss) from refinancing? 3) (5 points) What is your gain/loss from refinancing at the end of month 7? 0 (1 point) Compute the contractual value of your loan at the end of month 7. o (1 point) Compute the market value of your loan at the end of month 7. 0 (3 points) Compute the gain/loss from refinancing using the contractual and market values above. 4) (5 points) Complete the amortization table of the new loan at 8% APR. 5. (20 points) You purchased a $300,000 apartment with a down payment in cash of 20% of the purchase price. The remaining 80% was financed with a 2-year mortgage (equal payment) loan with monthly payments at 12% APR. 1) (5 points) Complete the amortization table of the original loan without using IPMT and PPMT functions. 2) (5 points) Break down the 10th payment to the principal and interest portion using PPMT and IPMT functions. After your 7th payment, your bank advisor makes you an offer of refinancing your mortgage loan at 8% APR with the equal monthly payments for the remaining period with a refinancing fee of $4,000. Should you accept the offer? What is the expected gain (or loss) from refinancing? 3) (5 points) What is your gain/loss from refinancing at the end of month 7? 0 (1 point) Compute the contractual value of your loan at the end of month 7. o (1 point) Compute the market value of your loan at the end of month 7. 0 (3 points) Compute the gain/loss from refinancing using the contractual and market values above. 4) (5 points) Complete the amortization table of the new loan at 8% APR