1.Banna borrowed from YFG Bank P2,000,000.00 payable at the end of 5 years. Before maturity, an extraordinary deflation supervened causing the value of the debt to rise to P5,000,000.00 on the date of maturity. On due date, Banna must pay YFG Bank. How much should Banna pay?

Use this formula:

A= (B/C) x B

A= Amount to be paid at maturity

B= Amount of the obligation

C= Value on the date of maturity