1. To prepare for an expansion of their basket business , the family of Mr. Santos formed a sinking fund where monthly deposits will be made. They estimated that they will need at least 50,000 pesos for the expansion. If 3 % interest compounded monthly is given to the fund, how much monthly payment must be made into the fund to achieve the desired amount in one year? Prepare a balance sheet for sinking fund for the above.

2. How much does one pay annually to amortize a loan worth 2.5 million pesos at ani nterest rate of 2% compounded annually for 10 years? Make an amortization table for the loan above.