1. Alan is taking out a $15,000 loan from a bank to renovate his house. The bank is charging him an interest rate of 4% p.a., monthly compounding. The loan has to be repaid in 60 equal monthly instalments, with the first payment due a month from now).

   1. (a) (2 points) How much is each monthly payment?

   2. (b) (3 points) For the 24th payment (i.e., the payment that he will make 2 years

      from now), what is the ratio between (i) the portion of that payment that represents interest and (ii) the portion of that payment that represents principal repayment?