1. The management of Gibraltar Brokerage Services anticipates a capital expenditure of $26,000 in 2 yr for the purpose of purchasing new computers and has decided to set up a sinking fund to finance this purchase. If the fund earns interest at the rate of 12%/year compounded quarterly, determine the size of each (equal) quarterly installment that should be deposited in the fund. (Round your answer to the nearest cent.)
2. Andrea, a self-employed individual, wishes to accumulate a retirement fund of $900,000. How much should she deposit each month into her retirement account, which pays interest at a rate of 5.5%/year compounded monthly, to reach her goal upon retirement 20 yr from now? (Round your answer to the nearest cent.)