1. To buy a commercial building you take out a Constant Payment Mortgage (CPM) loan, with a 15-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 months 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 months payment would be the interest cost?
   5. What is the effective rate of the loan relative to the banks quoted rate of 6%?