Alan borrows $100,000 at nominal interest rate 9% per annum which matures in 5 years. Repayments are made monthly such t

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Alan borrows $100,000 at nominal interest rate 9% per annum
which matures in 5
years. Repayments are made monthly such that each monthly
payment in the last 2
years is twice that in the first 3 years.
a) Calculate the monthly payments for this loan.
b) Construct the amortization table for this loan which includes
the following columns
Installment, Interest payment, Principal payment, Outstanding
balance.
c) After 3 years, the market nominal interest rate falls to 6%
per annum. Alan wants
to terminate the loan. The bank charges the termination fee
which is 40% of the
difference in total remaining interest payment. Calculate the
amount Alan needs
to pay the bank (including outstanding balance and termination
fee).
d) Alan borrows the amount in part c) at 6% per annum. If he
keeps to the current
monthly payment, how long will he pay off everything ?
e) What is Alan’s monthly payment if he decides to keep to his
schedule of paying
off the debt in the next 2 years ?
f) Suppose Alan follows the payment schedule in part e). Write
down the equation of
value for the cash flow generated by Alan in terms of the
hypothetically constant
monthly internal rate of return i. Use Excel’s Solver
to find i.