A. You want to take out a 15 year fixed rate mortgage on a $400,000 house. Current mortgage rates are 9.5% (nominal rate, compounded monthly). Calculate your monthly payment on this mortgage.

B. Using a spreadsheet, prepare an amortization schedule, for the first 12 payments, for this mortgage showing principal outstanding and the portion of each months payment towards interest and principal.

C. After exactly one year (i.e., immediately after the 12th payment), you use your $200,000 annual bonus to reduce the principal outstanding on your mortgage. You continue making the same monthly payment that was calculated in part (a). When will the loan be fully paid off?