1. Your friend asks you to help him determine the appropriate price to pay for an annuity offering a retirement income of P10,000 a month for 10 years. Assume the interest rate is 6% compounded monthly. (Hint: Present Value)

2. Ms. Noella wants to have P95000 for his traveling expenses four years from now. How much must he save at the beginning of each quarter starting now, if he gets 6% compounded quarterly interest on his savings? Note. Round off your answer to the nearest hundredths.