Suppose that you plan to buy a house with price of $125,000. You purchase the house with $25,000 from your own pocket and $100,000 borrowed from a lender. The mortgage information is as follows: $100,000 @ 7.50% for 30 years, monthly payments. Questions: 1. What is your loan-to-value ratio? 2. What is your monthly payment over its entire term? 3. What is your interest and principal payments in the 1st month, 60th month, 120th month, 240th month, 360th month? 4. What is your total interest and principal payments in the 1st 10 years (years 1 to 10), the 2nd 10 years (years 11 to 20) and the 3rd 10 years (year 21 to 30)? 5. What is your annual percentage rate (APR)? Assuming there is no transaction cost and discount points. 6. If you decide to move after 5 years, what is your outstanding balance at the end of year 5? What is your effective cost of this borrowing?