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 $640,000 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 20 years from today, on 1 July 2041.
• Peter has arranged for an interest rate of 5.8% p.a. effective to be locked in for the life of this loan.

a. The interest rate for the loan is 5.8% p.a. effective. Calculate the equivalent nominal annual rate compounding monthly. Give your answer as a percentage to 4 decimal places.

b. Calculate the equivalent effective monthly rate. Give your answer as a percentage to 4 decimal places.

c. Calculate the size of the level monthly repayment needed in order to fully repay the loan by 1 July 2041. Give your answer to the nearest cent.

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