Ayman need to borrow $$250,000.$ The Arab bank rate is $10\%.$ Ayman intend to repay his loan monthly over $15$ years. The Arab Bank stipulate that any early payment would entail a penalty of $10\%$ of the outstanding principal.

What would be each payment?

Build an amortization table

$5$ years later$-$Bank of Palestine announce that the rate is $7\%$;

i$.$ What is the contract value of the loan after $5$ years

ii$.$ What is the market value of the loan after $5$ years?

iii. How much should Ayman Borrow form the Bank of Palestine to liquidate his position

vi$.$ How much he needs to pay$-$monthly$-$to BP

iv$.$ Should he refinance $?$ Explain