Precursor Questions For Reference: Only need questions 6-10 complete. Thanks so much for your help!

You have just passed ACST1001 and started a summer internship at Harrison Bank, with Peter as your supervisor. As your first task, Peter has given you some client accounts and asked you to verify some of the details.

The first file is for a client named Mary, who has a mortgage with the bank. You go through the file and note the following information for Marys mortgage

• Initial loan: $430,000
• Term of loan: 25 years
• Repayment frequency: End of each fortnight
• Interest rate on loan: 12=i12=3.3%

Using this information, determine the following:

What is the periodicity needed given the above information?

a.

Fortnightly, since the repayments are fortnightly

b.

Monthly, since the 3.3% is a nominal annual rate compounding monthly

c.

Daily, since there are exactly 365 days in a year (ignoring leap years)

d.

The second file is for a client named Toomes, who also has a mortgage with the bank. The details you can gather for Toomes loan are as follows:

• Current loan outstanding: $540,000
• Current monthly repayment: $3120
• Next repayment: Due exactly 1 month from now
• Interest rate on loan: 12=i12=5.7%

Using this information, determine the following:

How much interest is Toomes charged for the coming month? Do NOT include a dollar sign in your answer.

Yearly, since the term of the loan is measured in years