As the financial advisor for Lucyand herfamily, there are some payments Lucywants you to find out.

a. Lucyis looking for mortgages (loan) to finance (buy) a house. The bank has offered a 30-year fixed mortgage that needs herto pay 6% interest compounded monthly. The purchase price of the house is $3,000,000, and Lucyplans to make a down payment equal to $1,000,000. Whatwould hermonthly payments be with the bank mortgage?

b. Based on the monthly payments that you calculated above, suppose it is now 10 years later, and Lucyhas lived in the house for 10 years. She is consideringpaying off the mortgages. How much does she owe on the mortgage if this months payment was made yesterday (Hints: she has 20 years left for monthly payments)?