Problem:
Suppose you are buying your first house for $400,000 with 20% down payment. You have arranged to finance the remaining amount with a 30-year, monthly payment, amortized mortgage at nominal annual rate of 3.6%.
Task:
Question 1: What is the monthly mortgage payment?
Question 2: For the 120th payment, what is the break down between interest payments vs. principal payment?
Question 3: What is the remaining balance after 25 years with 300 monthly payments?
Give details comprehensively as well as show all workings.