3) You have approached a commercial bank to obtain a fully amortised mortgage loan of $950,000 to purchase your dream home. You are offered a 30-year loan with a fixed interest rate of 5.2% p.a. compounded monthly. Payment of the loan is required at the end of each month.

1. What is a mortgage loan? (2 marks)
2. Calculate the amount you will be required to pay monthly. (4 marks)
3. If payment of the loan was required at the beginning of each month, what would the monthly instalment be? (2 marks)