Olivia plans to secure a 5-year balloon mortgage of $200,000 toward the purchase of a condominium. Her monthly payment for the 5 years is calculated on the basis of a 30-year conventional mortgage at the rate of 5%/year compounded monthly. At the end of the 5 years, Olivia is required to pay the balance owed (the "balloon" payment). What will be her monthly payment for the first 5 years, and what will be her balloon payment? (Round your answers to the nearest cent.)

(a) What is Diane's current monthly mortgage payment?

(b) What is Diane's current outstanding principal?

(c) If Diane decides to refinance her property by securing a 30-year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 3.5%/year compounded monthly, what will be her monthly mortgage payment?

(d) How much less will Diane's monthly mortgage payment be if she refinances?