Question # 2 & 3 Refinancing Decision Following information is related with 2c and 2d: You borrowed 600,000 PKR from a bank(Bank A) to be repaid in 24 equal monthly installments, the first payment to be made one month from now. The interest rate is 12% APR. 2. Calculate the equal monthly installment amount to be paid to Bank A. 3. Suppose after making the sixth payment on the loan taken from Bank A, you find out that another bank (Bank B) lends at an APR of 9%. Hence you are considering to refinance your loan, i.e. borrow from this bank (Bank B) at 9% APR for 18 months, and repay the balance in your original loan of Bank A. However upon careful consideration, you discover that the first bank (Bank A) requires a 2% penalty on the remaining balance for early payments and the second bank (Bank B) asks for a loan initiation fee of 5000 PKR. Should you refinance your loan?[Note: Loan Amortization Schedule is not required, Hint: You can start by calculating the present value of 18 equal monthly installment of Bank A].