1.)

a.) You need a 20-year, fixed-rate mortgage to buy a new home for $500,000. Your mortgage bank will lend you the money at a 4.5 percent APR for this 240-month loan, with interest compounded monthly. What is the monthly payment?

b.) Using the previous exercise, suppose now, you can only afford monthly payments of $1,000, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. What will be the amount of the balloon payment if you are to keep your monthly payments at $1,000?

please show steps and formula used