Instead of paying P 10,000.00 in annual rent for office space at the beginning of each year for the next 10 years, an engineering firm has decided to take out a 10 year, P 100,000.00 loan for a new building at 6% interest. The firm will invest P 10,000.00 of the rent saved and earn 18% annual interest on that amount. What will be the difference between the firm's annual revenue and expenses? (Show complete solution)

1. The firm will need extra P 3,300.00 extra
2. The firm will need extra P 1,800.00 extra
3. The firm will break even
4. The firm will have P 1,600.00 left over