You have just passed ACST1001 and started a summer internship at Harrison Bank, with Peter as...

 

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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 Mary's mortgage Initial loan: $640,000 .Term of loan: 25 years • Repayment frequency: End of each fortnight Interest rate on loan: 112=7.6 % Using this information, determine the following: What is the periodicity needed given the above information? O a. Yearly, since the term of the loan is measured in years O b. Daily, since there are exactly 365 days in a year (ignoring leap years) OC Monthly, since the 7.6% is a nominal annual rate compounding monthly O d. Fortnightly, since the repayments are fortnightly 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 Mary's mortgage Initial loan: $640,000 .Term of loan: 25 years • Repayment frequency: End of each fortnight Interest rate on loan: 112=7.6 % Using this information, determine the following: What is the periodicity needed given the above information? O a. Yearly, since the term of the loan is measured in years O b. Daily, since there are exactly 365 days in a year (ignoring leap years) OC Monthly, since the 7.6% is a nominal annual rate compounding monthly O d. Fortnightly, since the repayments are fortnightly

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The correct option is d d Fortnightly since the repayments are fortnightly ... View the full answer