Consider a 20-year mortgage for $350,000 is taken out in Jan. 2019 at a 5.40% annual...

Consider a 20-year mortgage for $350,000 is taken out in Jan. 2019 at a 5.40% annual interest rate.

d. If a $250 per month prepay is made starting with payment #1 and continuing to the end of the payment period, how much interest is saved? (3)

e. After 18 payments, what is the outstanding loan balance? (2)

(Note: This question can be determined computationally by hand using the same method to determine the answer to the previous question. The "AMORT" key on a financial calculator can also be used, as well as the CUMPRINC function in Excel. For details, see the instructor.)

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