Q$1.$

A$$machine$$costs$$the$$company$$K$98,000$and$$its$$effective$$life$$is$$estimated$$to$$be$12$years$.$If$$the$$scrap$$realizes$$K$3,000$only$,$what$$amount$$should$$be$$retained$$out$$of$$profits$$at$$the$$end$$of$$each$$year$$to accumulate$$at$$compound$$interest$$at$5\%$per$$annum$?$

Q$2.$

A$$mortgage$$of$$K$200,000$is$$to$$be$$repaid$$over$$a$25$year$$period$$at$$a$$fixed$$interest$$rate$$of$4\mathrm{.}5\%.$Calculate$$the$$monthly$$repayments$.$