Sarah would like to purchase a condo in Vancouver. She currently rents an apartment for $4,500 per month. The condo she is looking at costs $1,500,000. She intends to put $300,000 down. The condo has monthly condo fees of $300/month, property taxes of $200/month and repairs of $100/month. She can obtain a 30-year mortgage for 3% per year compounded monthly. There are the following closing costs at purchase: Land transfer tax $20,000 Legal fees 1,500 There are the following closing costs when selling: Real estate commission of 3% of selling price Legal fees 2,000 (a) What is the required monthly mortgage payment on the new property? (You need to convert the annual interest rate to a monthly rate.) (b) What is the initial cash outflow of the purchase decision? What is the present value of all the cash outflows for the purchase from month 0 to month 120 (the first 10 years)? What is the principal outstanding for the loan after 10 years? (Calculate the value at year 10 of the remaining 20 years of mortgage payments) Sarah would like to purchase a condo in Vancouver. She currently rents an apartment for $4,500 per month. The condo she is looking at costs $1,500,000. She intends to put $300,000 down. The condo has monthly condo fees of $300/month, property taxes of $200/month and repairs of $100/month. She can obtain a 30-year mortgage for 3% per year compounded monthly. There are the following closing costs at purchase: Land transfer tax $20,000 Legal fees 1,500 There are the following closing costs when selling: Real estate commission of 3% of selling price Legal fees 2,000 (a) What is the required monthly mortgage payment on the new property? (You need to convert the annual interest rate to a monthly rate.) (b) What is the initial cash outflow of the purchase decision? What is the present value of all the cash outflows for the purchase from month 0 to month 120 (the first 10 years)? What is the principal outstanding for the loan after 10 years? (Calculate the value at year 10 of the remaining 20 years of mortgage payments)