A man borrowed Php 120,000 and promised to pay annually for 5 years. The payment starts at "X" pesos. The man intends to increase his payments by Php 5,000 at the end of each successive year. If the interest rate is 8% compounded annually, how much will the first payment be? If the man decides to pay annually with 8 equal payments with the first payment to be made after 4 years, what will be the amount of the annual payment? Construct the cash flow diagram

Calculate the Future worth, at year 7, of the following cash flow. Consider 6% annual interest rate, compounded semiannually. 0 2000 1 3000 Interest Tables 2 1000 3 1500 4 5 6 7 $2,000 2500 3000 ia = (1 + i)m − 1 where İa = effective annual interest rate i = rate for one compounding period m = number times interest is compounded per year i = (1 + r / m)m – 1 where i = effective interest rate for any time period r = nominal rate for same time period as i m = no. times interest is comp'd in period specified for i

2. A warehouse is initially rented for Php. 100, 000.00 a year. If the 10-year lease contract indicates that the rent increases by Php. 10,000.00 each year, determine the present worth of the lease. Money is worth 8% compounded monthly.

For the given cash flow of geometric gradient, if A= $5,000 , the present value, P is closest to: