A fully amortizing mortgage loan is made for $116,000 at 6 percent interest for 20 years. Required: a. Calculate the mon

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A fully amortizing mortgage loan is made for $116,000 at 6 percent interest for 20 years. Required: a. Calculate the mon

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A fully amortizing mortgage loan is made for $116,000 at 6percent interest for 20 years.
Required:
a. Calculate the monthly payment for a CPMloan.
b. What willthe total of payments be for the entire 20-yearperiod? Of this total, how much will be the interest?
c. Assume the loan is repaid at the end ofeight years. What will be the outstanding balance? How much totalinterest will have been collected by then?
d. The borrower now chooses to reduce theloan balance by $6,600 at the end of year 8.
(1) What will be the new loan maturity assuming that loanpayments are not reduced?
(2) Assume the loan maturity will not be reduced. What will thenew payments be?
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