Peter now has $60,000 cash to invest in a property with purchase price of $300,000 property. To finance the purchase, he could obtain a $240,000 loan from either one of the following two banks. Both loans require monthly repayments.

Lion bank: a $240,000 loan at 9.5 percent for 20 years.

Tiger bank: a $180,000 loan at 9 percent for 20 years and a second loan for $60,000 at 13 percent for 20 years.

Required:

(a) What are the monthly repayments required by the two banks? Use the formula method. Show all workings.