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You want to take out a $450,000 loan on a 20-year mortgage with end-of-month payments. The annual rate of interest is 3%. Twenty years from now, you will need to make a $50,000 ending balloon payment. Because you expect your income to increase, you want to structure the loan so at the beginning of each year, your monthly payments increase by 2%. If needed, round your answers to the nearest cent. a. Determine the amount of each year's monthly payment. You should use a lookup table to look up each year's monthly payment and to look up the year based on the month (e.g., month 13 is year 2, etc.). Amount of first monthly payment b. Suppose payment each month is to be the same, and there is no balloon payment. How much is such monthly payment? Amount of first monthly payment $ You want to take out a $450,000 loan on a 20-year mortgage with end-of-month payments. The annual rate of interest is 3%. Twenty years from now, you will need to make a $50,000 ending balloon payment. Because you expect your income to increase, you want to structure the loan so at the beginning of each year, your monthly payments increase by 2%. If needed, round your answers to the nearest cent. a. Determine the amount of each year's monthly payment. You should use a lookup table to look up each year's monthly payment and to look up the year based on the month (e.g., month 13 is year 2, etc.). Amount of first monthly payment b. Suppose payment each month is to be the same, and there is no balloon payment. How much is such monthly payment? Amount of first monthly payment $

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