Consider a pool of 800 mortgages with the average size being $500 thousands, which is expected to be paid off in 25 years with fortnightly frequency (26 payments per year). The annual mortgage interest is 5%.

1. Estimate the value of fortnightly mortgage payments from the pool (2 marks).
2. Suppose that the servicing fee is 0.6%, fill in the following table (5 marks).

Fortnight	Beginning mortgage pool	Mortgage pool payment	Servicing fee	Net interest	Scheduled principal repayment	End of fortnight balance
1
2
3
4
5
6
7
8
9
10