1. Ms.Candelaria deposited PhP7000 at the end of each month of the calendar year 2019 in an investment account of 9% annual interest rate. Calculate the future value of the amount invested on December 31, 2020. Compounding is done on monthly basis.

2. Calculate the present value of each cashflow using a discount rate of 7%.Which do you prefer most? Show and explain all supporting calculations.

Cashflow A: receive PhP3,000 today and then receive PhP3,000 in four years. Cashflow B: pay PhP2,500 every year for five years, with the first payment being next year, and then receive PhP1,500 every year for 20years.