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Secondary Mortgage Purchasing Company (SMPC) wants to buy your mortgage from the local savings and loan. The original balance of your mortgage was $159,000 and

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Secondary Mortgage Purchasing Company (SMPC) wants to buy your mortgage from the local savings and loan. The original balance of your mortgage was $159,000 and was obtained five years ago with monthly payments at 10 percent interest. The loan was to be fully amortized over 30 years. Required: a. What should SMPC poy if it wants an 11 percent return? b. What is the balance of the original loan after flve additional years (10 years from origination)

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