1. For a 30-year mortgage of $270,000 at 4.5% interest, one additional payment of $10,000 is paid on the mortgage after 2 years of making regular payments.

How many monthly payments will be eliminated from the amortization because of this additional payment?

2. The Simpsons are moving into their new home. They purchased it for $300,000 by putting a down payment of $120,000 towards the purchase and paying the balance with $180,000 mortgage amortized over 25 years at 4.9% per annum (for a 3-year term). At the end of the 3-year term, the interest rate increased by 0.5%.

What is the approximate increase in their monthly payment?