1. STL service and installation works purchased a diesel generator from the ABB Electric Company valued at P2, 500. 000.00 on an easy payment plan, as follows: 20% cash upon delivery of the unit and...

Extracted text: 1. STL service and installation works purchased a diesel generator from the ABB Electric Company valued at P2, 500. 000.00 on an easy payment plan, as follows: 20% cash upon delivery of the unit and the balance to be paid in 24 monthly installments with 12 % nominal interest on the unpaid balance. a. How much would the STL pay each month to the ABB Electric Co.? b. If instead of the above terms, the STL decided to start a sinking fund to enable it to purchase the same motor after 2 years on cash basis at the same value less 10% discount for cash purchase, how much would the monthly deposit in the fund be, if the money will earn interest at 6%. Assume interest rates are compounded monthly.