Mr. Wong bought an apartment at a price of 3 million on Jan 1 2008. He borrowed 70% if property value. the first monthly instalment was due on Jan 31, 2008, the interest rate on the loan is set equal to the prime rate minus 1.5%.

On October 1 2012, Mr Wong's apartment had a market value of 4 million. He arranged a new mortgage to replace the old one. The new mortgage has a maturity of 10 years with the first monthly instalment due on October 31, 2912. the interest rate is set equal to the prime rate minus 2.5%. the prime rate has been constant at 5% from Jan2008 to October 2012.

Question1: How much would Mr. Wong receive from the bank when the new mortgage was arranged to replace the old one on October 1, 2012?

Question 2: what is the monthly instalment of the new mortgage?