You just took out a 15-year traditional fixed-rate mortgage for $400,000 to buy a house. The interest rate is 3.5% (APR) and you have to make payments monthly.

1. What is your monthly payment?

2. How much of your first monthly payment goes towards paying down the outstanding balance (in $)?

3. What is the outstanding balance after 1 year if you have made all 12 payments on time?

4. How much of your 13^th monthly payment goes towards paying down the outstanding balance (in $)?