Suppose you obtain a home mortgage loan from Wells Fargo Bank. The loan information is as follows:

Loan amount: $425,000 Interest rate (p.a.): 3.75% Loan term: 30 years (paid monthly) Start date (of financial payment): May 1, 2017

(1) Construct the amortization schedule for this mortgage loan. Please make sure you show the monthly payment, the pr oportion of interest and princi pal paid, and the ending balance for each scheduled paymen t date. You need to build the amortization table using two methods discussed in class:

(i) Determine the amounts from the relationship between the pay ments and balance;

(ii) Compute the payments/balance with the formulae listed on p ages 234-235 in the textbook.

(2) Without considering the time value of money, estimate the t otal interests paid during 30 years.

(3) Sensitivity analysis: Exami ne the same 30 year $425,000 mor tgage loan. If the mortgage rate per year were 2.50 %, 2.75%, 3.00%, 3.25%, 3.50%, 3.75%, 4.00%, 4.25%, 4.50%, 4.75%, or 5.00%,

What would be (i) the monthly mo rtgage payment and (ii) the total interest payments? Please construct a data table to answer the question.