You have just purchased a new home and need a mortgage. The following terms and conditions apply: > Purchase price including all taxes and mortgage insurance = $350,000.00 Down payment 10% (first time buyer) > Amortization period = 25 years > Interest rate locked in at 5.75% compounded semi-annually for a five-year term a) Calculate your monthly payments. b) How long would it take to pay off the loan if you paid 25% of the monthly payment calculated in part a) every week? Hint: Use the same formula except use the new weekly payment amount and the weekly interest rate; the principal you already know, so the only unknown is the number of payments. Recall X-Y; solving for N gives log (X) = N log (Y) BONUS QUESTION c) You have heard that you don't really pay off that much on a mortgage in the first few years. With your newly acquired knowledge of mortgages you decide to test this theory on your mortgage. Calculate the amount of principle you will owe on the loan after making monthly payments for 10 years?