Q1.A fully amortizing CPM loan is originated for $600,000 at 3.6% for 30years.A. What is the remaining mortgage balance at the end of 12 years? B. How much interest did the lender collect over the 12 years? Assume the borrower decides to reduce the loan balance by $50,000 at the end of year 12.C. What is the new loan maturity if the loan payments are not reduced?D. Assume the loan maturity will not be reduced. What will the new payments be?Q2. You are offered a Price level adjusted mortgage (PLAM) with the following terms:-Amount: $400,000-Interest Rate: 5.60%-Term: 30 years with monthly payments-Expected Inflation: 4.00% per yearA. What is the adjusted loan balance at the end of Year 1?B. What is the monthly payment in year 2? C. What is the adjusted loan balance at the end of year 2? Q3. You are interested in a fullyamortizing3/1adjustablerate mortgage (ARM) that has monthly payments over its 10-year term. You see a loan advertised that has an initial teaser rate of 2.00percent. The ARM’s margin is1.5%and it is subject to an annual interest rate cap of 2.0% and a lifetime interest rate cap of 6.0%. You plan on borrowing $550,000. Expectations for the index are as follows:Year Index1 3.52 3.93 4.14 4.55 5.26 6.17 5.78 3.59 2.510 3.2A. What is the monthly payment in year 1?B. What is the remaining mortgage balance at the end of year 3? C. What is the contract rate in year 4? D.What is the monthly payment in year 4?Q4.Assume you are interested in a3/1 interest-only ARM that has monthly payments and a30-year term. The initial contract rate is 3.00% and the contract rate for year 4 is 5.00%. The lender charges two discount points.The loan amount is $400,000.A. What is the monthly payment in year 1?B. If the loan is prepaid at the end of year 3, what is the effective interest rate?C. If the loan is prepaid at the end of year 4, what is the effective interest rate?WORK NEEDS TO BE SHOWN. HAND WRITTEN AND UPLOADED WOULD BE GREAT OR WRITTEN OUT ON A DOC AND UPLOADED