To finance the purchase of a new home, a homebuyer takes-out a fully amortizing loan in the amount of $500,000 at 9% interest per year, compounded monthly, for a term of 20 years.

1. What is the outstanding balance of the loan at the end of 5 years?

2. At the end of year 5, the market rate of interest is 6%. What is the market value of the loan at the end of 5 years?

3. If this loan is sold at market value at the end of year 5, is this loan sold at a discount?

use financial calculator, explain why please.