1. A graduating high school student decides to take a year off and work to save money for college. The student plans to invest all money earned in a savings account earning 6% interest, compounded quarterly. The student hopes to have P10,000 by the time school starts in 12 months. How much money will the student have to save each month?

2. A lathe for a machine shop costs P60,000 if paid in cash. On the installment plan, a purchaser should pay P20,000 down payment and 10 quarterly installments, the first due at the end of the first year after purchase. If money is worth 15% compounded quarterly, determine the quarterly installment.