II. Solve each problem and show your work clearly. (30 points) 1. (8 points) You have recently been approved a mortgage for a property. The mortgage is for a 25-year period with a 4% annual interest rate for a total amount of $600,000. These conditions result in an annual payment (debt service) of $38,407. What will be the interest and principal payments for the second and third year of the mortgage? What will be the remaining principal balance at the end of the third year? (Show your calculations.)