Bruce is paying $25,000 each year on his mortgage with 10 years of payments left and the next payment in one year. In 6 years he will receive a lump sum payment of $40,000 which he will use to pay...

Bruce is paying $25,000 each year on his mortgage with 10 years of payments left and the next payment in one year. In 6 years he will receive a lump sum payment of $40,000 which he will use to pay down the principal on his mortgage. As a result, starting in year 7 he will make lower payments on the loan. Find his new payment if the interest is rate 6%. Find the reduced payments. (This one might be a little difficult – Hint what is the equivalent of $40,000 paid over 4 years)