Review 2 You are about to buy a house that costs $1,750,000. You have saved a lot of uoney over the years and are prepared to (i) make a down payment of $250,000 and (ii) borrow $1,500,000 to pay for the house. The loan will be amortized over the next 30 years. The mortgage rate is 7 %. Interest is compounded monthly and all payments are due at the end of each month. (a) What is the monthly mortgage payment ? (b) What % of payments during the second year go toward interest? % (c) How much will you owe your lender after 5 years? (d) How much could you borrow (under the same terms) if you had to limit your monthly payment to $6,000