ACTIVITY 1. Calculate the fair market value of a cash flow stream that includes an annuity. Write your answer in a separate answer sheet. 1. Mr. Silva received two offers on a lot that he wants to sell. Mr. Dela Cruz has offered P60, 000 and a P1million lump sum payment 5 years from now. Mr. Cruz has offered P60,000 plus P40,000 every quarter for five years. Compare the fair market values of the two offers if money can earn 5% compounded annually. Which offer has a higher market value? 2. Kate received two offers for investment. The first one is 250,000 every year for 5 years at 9% compounded annually. The other investment scheme is 13,000 per month for 5 years with the same interest rate. Which fair market value between these offers is preferable?ACTIVITY 2. Read the annuity problem below. Fill in the blanks in the statement that follows. Write your answer in a separate answer sheet. A loan of P30,000 is to be repaid monthly for 5 years that will start at the end of 4 years. In interest rate is 12% converted monthly, how much is the monthly payment? 1. The type of annuity illustrated in the problem is a 2. The total number of payment is The number of conversion periods in the period of deferral is 4. The interest rate per period Is The present value of the loan is ACTIVITY 3: Find the period of deferral in the following problems. Write your answer in a separate answer sheet 6. Monthly payments of P10,000 for 8 years that will start 6 months from now. 7. Semi-annual payments of P15,000 for 10 years that will start 5 years from now. 8. Payments of P5,000 every 4 months for 10 years that will start five years from now. 9. Annual payments of P600 for 20 years that will start 10 years from now. 10. Payments of P3,000 every 3 years for 12 years starting at the end of 9 years