please solve for a) and b). no excel formulas. Please show step by step. Ty

4. Rio Grande Ciders (RGC), a U.S firm, has just borrowed a 3-year fixed rate loan of E2,000,000 to make improvements to an Italian fruit plantation and processing plant. RGC was able to obtain a fixed euro interest rate of 5.0% per year. Interest payments are due at the end of the year and RGC choose not to hedge. a) If the euro depreciates against the dollar from $1.2/E at the time the loan was made to $1.1/E at the end of the first year, how much US$ interest will RGC pay at the end of the first year? b) If the euro depreciates against the dollar from $1.2/E at the time the loan was made to $1.0/e at the end of the third year, how much interest and principal will RGC pay in US$ at the end of the third year