1. You have just passed ACST1001 and started a summer internship at Harrison Bank, with Peter as your supervisor. As you

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1. You have just passed ACST1001 and started a summer internship
at Harrison Bank, with Peter as your supervisor. As your first
task, Peter has given you some client accounts and asked you to
verify some of the details.
The first file is for a client named Mary, who has a mortgage
with the bank. You go through the file and note the following
information for Mary’s mortgage
Using this information, determine the following:
What is the periodicity needed given the above information?
a.
Yearly, since the term of the loan is measured in years
b.
Daily, since there are exactly 365 days in a year (ignoring leap
years)
c.
Monthly, since the 4.6% is a nominal annual rate compounding
monthly
d.
Fortnightly, since the repayments are fortnightly
2. The interest rate for Mary's loan is i12=i12=4.6%.
Calculate the effective monthly rate. Give your answer as a
percentage to 4 decimal places, and do NOT include a percentage
sign.
3. Calculate the effective fortnightly rate. Give your answer as
a percentage to 4 decimal places, and do NOT include a percentage
sign
4. Calculate the size of each of Mary’s repayments using the
information given above. Give your answer to the nearest cent, and
do NOT include a dollar sign.