You have saved $65,000 to use as a down payment on a new home that has a cost of $650,000

a) How much money will you need to borrow through a mortgage for your home? (1 mark)

b) The bank offers to finance your purchase with a 25-year amortized mortgage with a 5-year term at 4.125%. If you want to make monthly payments on this loan (end of each month), how much will each payment be? (5 marks)

c) Prepare an amortization schedule for your first 3 mortgage payments (3 marks)

d) At the end of the 5-year term, how much do you still owe? (3 marks)

e) How much interest would you save over the life of the mortgage if you chose an amortization