1. Two sisters, Joan and Jocelyn decided to save money in funds that earns 14% compounded annually but on different ways. Joan decided to save by making an end-of year deposit of P1000 on the first year, P1,100 on the second year and so on increasing the next years deposit by 10% of the deposit on the preceding year until the end of the 10th year. Jocelyn decided to save by just making equal deposits of P1,400 annually for 10 years. Who has more savings at the end of 10 years? 2. In the diagram below, what is the value of K on the left hand cash flow that is equivalent to the right hand cash flow? 650 540 430 320 KK 210 100 0 0 1 2 4 5 2 3 End of Year 0 1 2 3 4 5 6 7 End of Year