As a financial adviser to Peter, you need to convert the above three rates into "Effective Annual Rates EAR" for comparison and then advise Peter which quotation is the best choice based on EAR. $(10$ marks$)$

Question $4(10$ marks$)$

You have just purchased a property for $$8$ million, with $70\%$ financed through a $20-$year mortgage. The mortgage loan has fixed monthly payments, with the first payment due in exactly one month from now. The stated annual percentage rate on the loan is $6\%$ compounded monthly.

a$)$ How much is the monthly payment?

$(5$ marks$)$

b$)$ How much is the principal payment and interest payment in the second monthly payment? $(5$ marks$)$