Problem #2. Your aunt purchased a home for $375,000. After a 20% down payment, the balance was financed with a 30-year, 3.1% fixed-rate mortgage.

(a) Calculate your aunt's monthly payment. Show your work.

(b) Prepare an amortization schedule for the first three month of your aunt's loan. (c) How much money should your aunt save if she financed her home for 15 years instead of 30, given the exact same conditions? Show your work.