1. A mother purchases a piece of furniture for P25,000. She pays a 20% down payment and agrees to pay the remaining balance in 12 equal monthly payments. Find the finance charge on the balance if the simple interest rate is 6%.

2. What is the effective rate for an account paying 7.2% compounded monthly?

3. A car costing P1.2M is to be paid off by monthly payments over five years at a 10% annual interest rate. The sales tax is 6% of the purchase cost and the down payment made is 120,000. How much is the monthly amortization?

4. How much should be invested today in order to obtain #200,000 in five years at 6.5% compounded quarterly?

5. A computer equipment has an original cost of P650,000 with a scrap value of P50,000 at the end of eight years. What semiannual payments must be set aside into a sinking fund to replace the equipment in eight years if the interest rate is 4% compounded semiannually? Assume a 2% inflation rate.