Loan amount: $

$150$

$,$

$000$

monthly interest rate at loan origination:

$0\mathrm{.}4$

$\%$

$(\mathrm{.}004)$

Amortization period:

$240$

$$months

Term:

$60$

$$months

What is the outstanding loan balance after

$36$

$$months$?$

What is the outstanding loan balance after

$60$

$$months$?$

If the prevailing monthly mortgage interest rate falls to

$0\mathrm{.}25$

$\%$

$(\mathrm{.}0025)$

$$after

$36$

$$payments$,$ what would be the prepayment penalty

$($

max of

$3$

$$months interest or the compensating penalty

$("$

IRD

$")$

$$that we worked through in class?