ABC Real Estate Inc. isgoing to purchase a vacant land to develop an apartment building. The cost of the land is $500,000. The company desires to borrow a $550,000 loan from the bank to pay for taxes and other costs associated with the purchase. According to the loan agreement,the company needs to pay off the loan after 3 years with an annual percentage rate (APR) of 3.6%, compounded monthly.

(a) What is the total amount of payment due after 3 years? (2 points)

(b) What is the effective interest rate for the loan? (3 points)