1. Murphy Morsels just bought a new chocolate-chip- making machine for $25,000. Murphy's old machine was taken as a trade and was valued at $5000. Also, Murphy received a 5% discount on the new machine's price after the trade-in allowance. Murphy plans on making monthly payments for 3 years with 12% nominal interest. What is the monthly payment?
2. Nichols Electric expects to replace a $500,000 piece of equipment in 4 years. It plans to accumulate the necessary funds by making equal monthly deposits into a bank fund that earns 3 % per month. What is the monthly deposit?