Answer the following questions by including the appropriate cash flow diagrams, solutions and final answer 1. At what effective interest rate will 8% compounded quarterly be comparable to?

2. How much money should be deposited now in an account that pays 4% compounded annually in order to make five equal withdrawals of Php 50,000?

3. How much invested now at an interest rate of 10% would be just sufficient to provide four payments as follows: the first payment in the amount of Php 40,000 occurring two years from now, the second payment in the amount of Php 50,000 four years thereafter and two successive payments of Php 75,000 on years 8 and 9? 4. A man started working on his 22nd birthday and plans to make a down payment for a condominium unit on his 27th birthday. The condominium unit is worth Php 5M today and requires a 15% initial payment. Anticipated increase on the value of real estates is 10% by the time he has accumulated the amount for the down payment. If he intends to make equal deposits into an account earning 7% beginning one year after his first day of work, how much should the deposits be? 5. If Php 45,000 deposited in a savings account at the beginning of each year for 15 years and the account earns 5% interest, what will be the balance on the account at the end of 25 years?