Sonu and Nikki decide to buy a house worth $375,000.00. They are advised to pay a 20% deposit with the remainder funded by a bank loan. The terms of the loan are as follows. The interest rate is 9% per annum compounding monthly, with monthly payments over a 25-year term.

A. Calculate the value of the loan?

B. Calculate the interest rate per period and number of payments

C. Calculate the value of the payment?

D. Calculate the value of the loan outstanding after making payments for 6 years?

E. Calculate the principal reduction after making payments for 6 years?

F. Calculate how much interest they have paid over the 6 years?

G. Suppose after making payments for 6 years, the interest rate increases to 12% per annum compounding monthly, calculate the value of the new payment?

[Hint: first find the value of the loan outstanding after making payments for 6 years, then calculate the new payment using the new interest rate