Question: SHOW CLEAR WORK ON EXCEL A 30-year fully amortizing mortgage loan was made 10 years ago for $75,000 at 6 percent interest. The borrower would

SHOW CLEAR WORK ON EXCEL

A 30-year fully amortizing mortgage loan was made 10 years ago for $75,000 at 6 percent interest. The borrower would like to prepay the mortgage balance by $10,000.

a. Assuminghecanreducehismonthlymortgagepayments,whatisthenewmortgagepayment?

b. Assuming the loan maturity is shortened and using the original monthly payments, what is the new loan maturity?

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