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A fully amortizing mortgage loan is made for $108,000 at 6 percent interest for 20 years. Required: a. Calculate the monthly payment for a CPM

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A fully amortizing mortgage loan is made for $108,000 at 6 percent interest for 20 years. Required: a. Calculate the monthly payment for a CPM loan. b. What will the total of payments be for the entire 20 -year period? Of this total, how much will be the interest? c. Assume the loan is repaid at the end of eight years. What will be the outstanding balance? How much total interest will have been collected by then? d. The borrower now chooses to reduce the loan balance by $5,800 at the end of year 8 . (1) What will be the new loan maturity assuming that loan payments are not reduced? (2) Assume the loon maturity will not be reduced. What will the new payments be? Complete this question by entering your answers in the tabs below. Calculate the monthly payment for a CPM loan. (Round your final answer to 2 decimal places.) What will the total of payments be for the entire 20-year period? of this total, how much will be the interest? (Do not raund) intermediate calculations. Round your final answers to 2 decimal places.) Assume the loan is repaid at the end of eight years. What will be the outstanding balance? How much total interest will have been collected by then? (Round your intermediate calculations and final answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. d. The borrower now chooses to reduce the loan balance by $5,800 at the end of year 8 . (1) What will be the new loan maturity assuming that loan payments are not reduced? (Round your intermediate calculations to 2 decimal places and final answers up to the nearest whole numberi) (2) Assume the loan maturity will not be reduced. What will the new payments be? (Round your intermediate calculations and final answers to 2 decimal places.)

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