Question 1 (25 points) Assume your aunt bought her house on December 31, and she took a mortgage in the amount of $500,000 to finance her purchase. The mortgage has a annual percentage rate (APR) of 10%, but it calls payments every 6 months, beginning on June 30, and the mortgage is to be amortized over 10 years. a. What is the semiannual payment for the 10-year mortgage? b. What is the amount of 'amortization of the loan' at the end of the second year? c. Assume your loan is inflation-indexed, it means the payments are adjusted for inflation. What will be your payment at the end of the second year? Assume fixed effective inflation rate of 1% per year. d. If the APR continuously compounded, and the payments were paid every year, what should be your annual payment? Solve a & b with excel functions Question 1 (25 points) Assume your aunt bought her house on December 31, and she took a mortgage in the amount of $500,000 to finance her purchase. The mortgage has a annual percentage rate (APR) of 10%, but it calls payments every 6 months, beginning on June 30, and the mortgage is to be amortized over 10 years. a. What is the semiannual payment for the 10-year mortgage? b. What is the amount of 'amortization of the loan' at the end of the second year? c. Assume your loan is inflation-indexed, it means the payments are adjusted for inflation. What will be your payment at the end of the second year? Assume fixed effective inflation rate of 1% per year. d. If the APR continuously compounded, and the payments were paid every year, what should be your annual payment? Solve a & b with excel functions