1. A fully amortizing CPM loan is originated for $600,000 at 3.6% for 25 years.

Please show the following, what is the remaining mortgage balance at the end of 12 years and how much interest did the lender collect over the 12 years.

Moreover, assume that the borrower decides to reduce the loan balance by $60,000 at the end of year 12. Please show what is the new loan maturity if the loan payments are not reduced and after that assume the loan maturity will not be reduced. What will the new payments be?