Assume that you take a 10-year mortgage for 100,000 at 8.75% pa. It isto be repaid monthly 2. (a) What is the monthly repayment amount? Assume the interest is compounded monthly. (b) How long does it take to pay off 40% to have $60,000 outstanding)? AR/pmT e balance outstanding fter two years? (dXTwo years after the mortgage s e able to pay, $400 more into your mortgage, what impachwould this have on the remainingrms of your mortgage? (e) If the interest rate mcreases to 9.25% after 2 ver what will be your new monthly () If you can't afford the extra payment as calculated in part ehow lonewill you (g) If after two years the interest rate falls to 8.25 p.a. instead, what prepayment penalty repayment? take to pay off the mortgage if the bank agrees for you to keep repaying the original monthly payment? would make it unattractive to prepay the loan. (prepayment penalty is the fine imposed by the banks on the borrowers for prepaying their mortgage for the purpose of refinancing it at the lower interest rates)