PV of an annuity: = -a (1 + r) m) 1. You are planning to purchase a house using a mortgage loan where the payments are to be made monthly. The bank offers you a 15-year mortgage loan with a 20% down payment requirement at an annual interest rate of 5%. According to your plan, you will be able to make monthly payments of $2,000 equally. a) What will the cash price of the house that you are planning to purchase be? b) What is the required single amount to repay the loan just after the 60th payment where the bank charges an early repayment fee of 2%? c) What will the new monthly payment amount be if the mortgage loan is refinanced at the end of the 4th year at an annual interest rate of 4%? FV of an annuity