a. A property is valued at $580,000 and is used to secure a loan. The bank's policy is to lend at a loan-to-value ratio (LVR) of not more than 80%. If the current loan outstanding is $432,000 and a recession occurs reducing the value of the property to $520,000, how much will the borrower have to find to remain compliant with the bank's policy on LVR. b. (6 marks) The Uprising bank currently lends at a nominal rate of 12% per annum, requiring interest to be paid semi-annually. Mutual Bank charges a 10% interest annually, but requires interest to be paid quarterly. What is the difference in the effective annual rates charged by the two banks? (6 marks) A bank offers an amortised loan of $400,000 over a 3 year repayment period with an annual interest rate of 12%. C. i. ii. What is the repayment an ount on the loan if calculated monthly? (6 marks) What is the remaining balance of the loan after 24 monthly payments? (7 marks)