Q1:

Raya want to buy a house for investment- to rent it. Raya find out that the tenant pays $1000 Monthly. Raya bought the house for $250,000. She sign an agreement with AB to borrowed $150,000 at 12% to be paid monthly over 20 years , with a penalty of 3% on the outstanding balance in case of early payment . 5 years later Raya learned that the Bank of Palestine require 0nly 10% on Mortgage.

1. Did Raya paid a fair price for the house? Explain
2. What is the monthly payment that Raya need to pay
3. Draw a 2 month amortization table
4. Draw the financial position of Raya on the day she bought the hose
5. What is the outstanding balance after 5 years- after the 60^th payment.
6. What is the interest that Raya paid through this period- the 5 years.
7. What is the Raya Financial position after 5 years
8. How much Raya need to pay penalty to the AB
9. Should Raya refinance?