bought a $500,000 house with 20% down. He was locked in at a a. What is the Loan Amount? b. Calculate monthly payment A borrower has a 30-year mortgage loan for $200,000 with an interest rate of 6% and monthly payments. If she wants to pay off the loan after 8 years, what would be the outstanding balance on the loan? 3. A price level adjusted mortgage (PALM) is made with the following terms: Amount - $95,000.00 Initial Interest Rate +4% Term 30 years Points-6% Payments to be reset at the beginning of each year. Assuming inflation is expected to increase at the rate of 6% per year for the next 5 years 4. a. Compute the payments at the beginning of each year (BOY) b. What is the loan balance at the end of the 5 year s1Page