Mr Smith is struggling to repay his loan of $ 400,000 with payments of $ 7,200 made monthly in arrears for 6 years.

(a) Calculate the flat interest rate per annum

(b) Hence , or otherwise the APR of Mr Smith.s loan

After exactly one year, a loan company offers to "help" Mr Smith by restructuring his loan with new monthly payments of $ 4,000 made in arrears.

(c) Assuming the company charges the same APR as Mr Smith's original loan. Calculate the term of the new loan

(d) Calculate how much more interest in total Mr Smith will pay on his structured loan than on his original loan