You took a 30 year mortgage with monthly payments of $1200. The loan rate is 11% (APR) compounded monthly.

1)How much did you borrow from the bank?

2)You have 25 years left on the mortgage, what is your outstanding balance?

3)Interest rates have gone down to 6% (APR compounded monthly) and you wish to

refinance. Assume you wish to continue payments for the next 25 years, what is

the new monthly payment?

4)Bank imposes a penalty on closing loans early. What is the maximum penalty the

bank can impose such that refinancing will be worthwhile?

please show the steps on how to calculate