You obtain a $250,000 mortgage loan from Bank of Montreal to buy a house. The mortgage has a 5-year fixed rate of 4%/year (using Canadian mortgage convention), and the amortization period of the mortgage is 20 years.

(a) What is the monthly mortgage payment?
(b) How much do you owe the bank after the 36th monthly payment?

(c) For the 45th monthly payment, how much of it is for interest and how much of it is for principal repayment?

(d) What is the present value of the principal repayment portion of the first 60 pay- ments?