You just found the house of your dreams. The price of the house is $400,000. You have been qualified to get a mortagage loan with AAA Bank. The mortgage loan is for 30 years at an annual interest rate of 36%.

Part (A):

How much are your monthly payments for the loan?

Part (B):

What is the balance of the mortgage loan after2 year(s) of payments?

Part (C):

After 2 years of payments, you want to add extra money to the monthly payments so that you will be able to pay off the mortgage loan in 15 years. How much do you have to add to your previously computed monthly payments in order to accomplish this?

Components to arrive to the answer to part (A):

How many periods (the value of n) do we need to use in computing the monthly payments (PMT)?

____

What is the rate per period to use in solving the monthly payments for the mortgage loan?

_______%

(Round to two decimal places and enter them. Do not enter the % symbol. For example, if the answer is 2.43 percent, then enter 2.43)

How much is the monthly payment for the mortgage loan?

$_____

(Round to two decimal places and make your your answer has two decimals. Do not enter $ and use commas to separate thousands. For example if the answer is $1,000.20 then enter 1,000.20)

Components to arrive to the answer to part (B):

To compute the balance of the mortgage loan after 2 year(s), what is the value of n (number of periods) to use?

_____ periods

After 2 years, what is the balance of the mortagage loan?

$______

(Round to two decimal places and make your your answer has two decimals. Do not enter $ and use commas to separate thousands. For example if the answer is $1,000.20 then enter 1,000.20)

Components to arrive to the answer to part (C):

These calculations are after you have made payments for2 year(s). What is the value of n in the calculations of the new monthly payments?

_______ periods

How much are the new monthly payments (in order to pay off the loan in 15 years?

$______

After 2 years of payments, you want to add extra money to the monthly payments so that you will be able to pay off the mortgage loan in 15 years. How much do you have to add to your previously computed monthly payments in order to accomplish this?

$_______

(Round to two decimal places.)