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The first file is for a client named Mary, who has a mortgage with the bank. You go through the file and note the following
The first file is for a client named Mary, who has a mortgage with the bank. You go through the file and note the following information for Marys mortgage
- Initial loan: $680,000
- Term of loan: 25 years
- Repayment frequency: End of each fortnight
- Interest rate on loan: 12=i12=5.8%
a) The interest rate for Mary's loan is 12=i12=5.8%. Calculate the effective monthly rate. Give your answer as a percentage to 4 decimal places.
b) Calculate the effective fortnightly rate. Give your answer as a percentage to 4 decimal places
c) Calculate the size of each of Marys repayments using the information given above. Give your answer to the nearest cent
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