Lena borrows $30,000, repayable in monthly instalments over 10 years. The nominal interest rate is 12 per cent per annum.

a)What is the monthly repayment?

b)After 3 years have passed, the lender increases the interest rate to 13.5 per cent per annum and Layla is given the choice of either increasing the monthly repayment or extending the term of the loan. What would be the new monthly repayment?

c)What would be the new loan term?