1. The owner of a local pizzeria needs $250,000 in 5 years to open another branch. How much should be deposited in the company's sinking fund that earns 8% compounded monthly?
2. Jack borrowed $25,000 at 8% for 5 years. He also opened a sinking fund account that pays 6%. How much should he pay for the interest on his loan? What size deposit should he make to his sinking fund to pay off the principal of his loan on time.