1. On January 1, at the beginning of first year John Cothran offers to buy Ruth House's used tractor and equipment for $4,000, payable in 12 equal semiannual installments, which are to include payment of 10% interest on the unpaid balance and payment of a portion of the principal, with the first installment to be made at the beginning of first year. Calculate the amount of each of these installments.
2. Nadine Love invests in a $60,000 annuity at 12% compounded annually starting today. The first of 15 receipts from the annuity is payable to Love 10 years after the annuity is purchased and on the date Love expects to retire. Calculate the amount of each of the 15 equal annual receipts.