The interest rate for the loan is 3.3% p.a. effective. Which of the following is the best next step before trying to calculate the required monthly repayment for the mortgage?

a. Convert the 3.3% to a nominal annual rate compounding monthly, and use this new rate directly to calculate the monthly repayments.

b. Divide 3.3% by 12 to work in months

c. No interest rate conversion is needed. The 3.3% can be used directly.

d. Convert the 3.3% to an effective monthly rate, and use this rate directly to calculate the monthly repayments.