Sally Smith owns a multi$-$family residential apartment building in Jersey City, NJ$.$ On June $1,2016$ she

placed an $$8,000,000$ loan on the property. The terms of the loan were as follows:

Term: $,10$ Years

Interest Rate: $,5-\frac{3}{8}\%$

Amortization: $30$ Years

There is no pre$-$payment penalty on the loan.

She would like to refinance the outstanding loan balance on May $1,2021.$ She was offered the following

loan terms from two banks $($the maturity of each loan below is April $30,2031)$:

Bank A: $,$ They will refinance the balance of the existing loan at an interest rate of

$3-\frac{1}{4}\%$ interest based on a $25$ year amortization schedule.

Bank B: $,$ They will refinance the balance of the existing loan at an interest rate of

$3-\frac{3}{4}\%$ based on a $30$ year amortization schedule.

Answer the following questions based upon the information above. Show all work.

What is the outstanding loan balance on May $1,2021?$

Which bank with have the lower ADS?

What will the monthly payments be for Bank A$?$

What is the loan constant for the original loan?

Assume Ms$.$ Smith chose Bank A to refinance with, what would be the outstanding balance at

maturity?