Today is 1 July 2021. You are looking to purchase an investment property today (after months of research and negotiations). You have spoken to Peter, the loan specialist at Harrison Bank, to negotiate the terms of your mortgage. You and Peter have agreed to the following terms:

• You will borrow $460,000 today in order to purchase your chosen property.
• This mortgage will be repaid by level monthly repayments.
• Your first repayment to the bank will occur exactly 1 month from today, on 1 August 2021, and the final repayment will occur exactly 30 years from today, on 1 July 2051.
• Peter has arranged for an interest rate of 5.7% p.a. effective to be locked in for the life of this loan.

Determine the value of 12L12. Give your answer to the nearest cent, and do NOT include a dollar sign.

What does the product 1212L12i12 represent?

a.

The interest paid in the second year.

b.

The interest component of the 1313th repayment.

c.

The interest component of the 1212th repayment.

d.

Nothing. This expression is complete nonsense.