Your mortgage has 25 years left, and has an APR of 6.324% (with semianual compounding) with monthly payments of 1500
a) what is the outstanding balance
b) suppose you cannot make the mortgage payment and you are in danger of losing your house to forclosure. The bank has offered to renegotiate your loan. The bank expects $167000 for the house if it forecloses. They will lower your payment as long as they will recieve at least this amount ( in present value terms). If current 25-year mortgages interest rates have dropped to 4.111% (APR with semi annual compounding), what is th lowest monthly payment you could make for the remaining life of your loan that would be attractive to the bank?