Peter purchased a house costing RM59,500. He made a down payment ofRM6,500. The balance was borrowed from Credit Corporation which charges 9% effective. To settle the loan, Peter had to make equal monthly payments for 15 years.

(a) Show that the nominal rate compounded monthly that is equivalent to the effective rate above is 8.65% (correct to 2 decimal places).

(1.5 marks)

(b) Find Peter's monthly payment.

(1.5 marks)

(c) Find the total interest that he had to pay.