To buy a commercial building you take out a Constant Payment Mortgage (CPM) loan, with a15-year amortization term,for $ 500,000 with an interest rate of 6% and 2 points.:

1. What would the monthly payment be for the entire length of the loan?
2. What amount of the first month's payment would be applied to the amortization of the principal?
3. What would be the outstanding principal balance on the loan at the end of that first month?
4. What amount of the second month's payment would be the interest cost?
5. What is the effective rate of the loan relative to the bank's quoted rate of 6%?