David borrowed $900,000 to refurbish his holiday home. The loan requires monthly repayments over 15 years. When he borrowed the money, the interest rate was 12.6% per annum, but 18 months later the bank increased the rate to 14.1%, in line with market rates. The bank tells David he can increase his monthly repayment (so as to pay off the loan by the original agreed date) or he can extend the term of the loan (and keep making the same monthly repayment). Required: a) Calculate the new monthly repayment if David accepts the first option. Marks : 9 b) Calculate the extra period added to the loan term if David accepts the second option. Marks: 5 c) What is the total amount of interest paid by David under each option.