You just decided to purchase a house in London. The financial institution offers you a mortgage of 450 000$ over 25 years at 6%. The rate will be fix for 3 years and it will be re-negotiated at the end of 3^rd year.

1. Calculate your payments, if you decide to pay your mortgage on a monthly basis. (6 points)
2. Calculate the total amounts of capital and interest that you will be paying in the next 3 years. (6 points).
3. If the financial institution can receive and re-invest immediately your monthly payments at 12%, compound monthly, calculate the future value of your 36 payments at the end of the 3^rd year. (8 points)