Question 1[10 marks] Phuc owns a commercial building that will need a major renovation five years from now. The renovation cost at that time will be $2,000,000. Phuc has just started a savings account which earns interest of 12% p.a. compounded monthly. He will make equal monthly payments into the savings account. Each payment will be made at the end of each month, so the first payment will be made in one month's time. Notes: Round your answers to 2 decimal places & omit commas in expressions like 10,000 etc... a. What is the annual effective rate in %? [2 marks] % b. What monthly payment must Phuc make into his savings account to meet the renovation cost in five years' time? [3 marks] S c. How much will there be in the savings account at the end of 2 years, including the payment that will be made in two years' time? [2 marks] $ d. For two years, Phuc has been making the monthly payments that you calculated in (b). Immediately after he makes a payment at the two-year mark, there is a change of interest rate to 6% p.a. compounded monthly. At the same time extra faults are discovered in the property so the renovation cost at the end of year 5 is revised to be $3,000,000. How large are the monthly payments that Phuc will have to make in order to meet this target? Assume that the new payments are still made at the end of each month. [3 marks] S