1. Thomas purchased 400 shares of stock A for $23 per share and sold them more then a year later for $20 per share. He purchased 500 shares of stock B for $40 per share and sold then for $53 per share after holding them for the same time period. If Thomas is in a 25% tax bracket, what will his taxable capital gains be for the year?

2. A townhouse costs P5 million cash. Mr. Dizon who wants to purchase the house will have to pay P500 000 cash and a sequence of 10 equal annual payments, the first due at the end of 3 years. If money is worth 7%, how much is the annual payment?