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4. Mike owes James the following obligations: I. II P10,000 due at the end of 4 years P1,500 due at the end of 6

4. Mike owes James the following obligations: I. II P10,000 due at the end of 4 years P1,500 due at the end of 6 years with accumulated interest from today at (0.06, m = 2) Mike will be allowed to replace his total obligation by a payment at P2,000 at the end of 2 years and a second payment at the end of 5 years, with money worth 5%. 1 a. Find the unknown payment. Comparison date: at the end of 5 years. b. Mike wishes to replace the obligations by a first payment at the end of 2 years and twice as much at the end of 6 years with money worth 2 1/2 %. Find the unknown payments at a comparison date at the end of 5 years.

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