The loan is $200,000 with $20,000 down, 30 years, and 6% interest annually compounded monthly

The NBA Payment Program If you pay more on your mortgage you will pay it off sooner and pay less interest. Take a look at this program (we showed the video in class and it is posted on Canvas under Videos). The company is Nationwide Biweekly Administration Inc. (NBA). Under the NBA program you pay NBA half your monthly payment every two weeks. Because not every month has four weeks, you end up overpaying on a monthly basis. NBA saves this money for you. At the end of one year they will have accumulated enough to make an additional payment. However, they make this additional payment in the 12th month. This is not quite clear from their website. Their numbers make it look like they are paying more frequently, but assume they just do it at the end of the year. If you want to model this on a bi-weekly basis, please do so! e) How long does it take to payoff the mortgage in this case? Compare to the Basic 30-Year Mortgage. Explain the difference. f) How much interest do you pay over the life of the loan? Compare to the Basic 30-Year Mortgage. Explain the difference. g) How much money is NBA making? (1) NBA charges a $195 origination fee. (2) They charge $3.50 to process every bi-weekly payment. That is $01/year. (3) They earn interest on the additional money you send to them. This amount averages 1/12 of your monthly payment per month. Answer the following questions: Assume NBA invests your overpayments in a savings account earning 3%/year compounded monthly. How much interest do they earn on your money per year? What is the present value of NBA's revenue for your loan (you need to include the three sources described above)? Use a discount rate of 6%