Amortization Suppose you want to borrow $200,000 from the bank to buy a home and agree to repay the loan in 360 equal monthly payments, including all interest due. The bank charges 0.35% per month on the unpaid balance (4.2% per year compounded monthly). Answer the following questions about this loan. Question 8 How much is the monthly payment? Round to the nearest cent. 2 pts Question 9 After making 360 monthly payments, how much will you have paid in total to the bank? Round to the nearest cent. $ Question 10 After making 360 monthly payments, how much of what you paid the bank was interest? Round to the nearest cent. 3 pts 3 pts Amortization Revisit Suppose you decide to wait 5 years to save up before buying the house. You are able to put a down payment of $30,000 on the house, so that you only need to borrow $170,000 from the bank. Assume the interest rate is still the same, but you are now in a better financial position, and you can pay off the loan in 240 equal monthly payments. Answer the following questions about this loan. Question 11 How much is the monthly payment? Round to the nearest cent. 2 pts Question 12 After making 240 monthly payments, how much will you have paid in total to the bank? Round to the nearest cent. Question 13 After making 240 monthly payments, how much of what you paid the bank was interest? $ Round to the nearest cent. 2 pts 2 pts Investment Analysis You have $5000 to invest for 1 year. Fund A has an estimated 4% annual return, and Fund B has an estimated 10% annual return. Fund A is more stable, and preferred among investors with low risk tolerance. Fund B is less stable, but has larger returns. Answer the following questions about this investment opportunity. Question 14 3 pts Suppose you have a high risk-tolerance, and you invest everything in Fund B. How much do you expect to make on your investment? $ Round to the nearest cent. Question 15 3 pts Suppose you have a low risk-tolerance, and you invest everything in Fund A. How much do you expect to make on your investment? +A Round to the nearest cent. Question 16 3 pts Suppose you have a medium risk-tolerance, and you want an annual return of $355. You decide to invest part in Fund A and the rest in Fund B. How much do you need to invest in Fund A? $ Round to the nearest cent.