Ayman decided to buy a house. The value of the house is $250000. Aymen has $50000 and the rest would borrow from The Arab Bank for 20 years. The AB impose penalty equal to 3 time one month’s interest on the outstanding balance 

Required

a. What are the periodic payments? 

b. How much interest, would Aymen pay to the bank over 20 years. 

c. Aymen fail to pay the 12th, 13th, 14th payments, How much should be the 15th payment so that Aymen is back on track 

d. 3 years later, Ayman manages to rent the house. He increased the periodic payment by $1000 monthly. 

i. How long would it take to pay the mortgage?

 ii. How much an overall interest Aymen saved according to his new plan 

iii. In the 5th years, Aymen Learned that BP offers a mortgage at 7%. 

a. What is the outstanding balance 

b. Should Ayman refinance?