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 $760,000 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 19 years from today, on 1 July 2040.
• Peter has arranged for an interest rate of 5.5% p.a. effective to be locked in for the life of this loan.

Using the information provided, answer the following questions. It is highly recommended you draw a diagram to represent the given information.

The last payment for the loan occurs on 1 July 2040. For the next question, we will refer to 2040 as the "final year". what is the "final year"? (i.e. if the last payment occurs in 2031, type in 2031).

The first repayment of the loan occurs on 1 August 2021, and the final repayment occurs on 1 July in the "final year" as above. For each formula named below, select the corresponding valuation date (i.e. the point in time when the formula lands you)

Evaluate when is :

[choose from: 1 August 2021/, 1 June 2021, 1 July 2020, 1 July 2021, 1 August in the "final year", 1 June in the "final year", 1 August 2020, 1 July in the "final year"]

FV annuity due : ?

PV annuity due : ?

PV ordinary annuity : ?

FV ordinary annuity : ?