Vivien is considering buying an investment property for $550,000. ANZ Bank requires 10% deposit and offers her a 30-year loan for the balance of the purchase price. She can choose to repay the loan either by equal weekly instalments consisting of interest and principal repayment components at an interest rate of 4.55% p.a., compounded weekly, or by equal fortnightly instalments at 4.75% p.a., compounded fortnightly.

a. Explain with calculations which repayment option Vivien should choose. (2+1= 3 marks)

b. If Vivien wants to pay $1,000 a week, using the repayment option you identified in part a., how long will it take her to pay off the loan? (4 marks)