You are very excited to have won an auction for your dream apartment in Northcote that will cost $635,000 (inclusive of all taxes). You have diligently saved a deposit of $95,000 but will need to borrow the rest. You do your research and find that the best deal you can currently get from a financial institution is a 30-year loan at an interest rate of 9% p.a. compounding monthly. Your monthly payment due at the end of each month.

a) Given the facts outlined above, what is the regular monthly payment that you will be required to make?

b) How much interest did you pay in the first month?

c) How much do you owe after the first month (immediately after you make your payment)?

d) 6 months after taking the loan out you make a payment and the bank immediately increases interest rates to 12% p.a. By how much will your regular monthly payment change assuming the loan term is not adjusted?