1. A father on the day his son is born, wishes to determine what amount of money will he deposit in a bank account that earns a yearly interest rate of 12 percent to provide uniform year end withdrawals of $ 2,000 yearly starting with the 18^th up to the 21^st birthday of his son. After the withdrawal on the sons 21^st birthday there is no more money in the bank account. Compute the amount that will be deposited.
2. A man purchased an equipment on credit costing P 60,000 to increase productivity in his firms operation. The debt will be repaid in 12 quarterly equal payments, each installment payable at the beginning of each period. The annual interest rate is 24 percent compounded quarterly. What is the amount of each payment? Answer: P 7,371.91