T restaurant sold a fast-food restaurant franchise to I. The sale agreement, signed on January 2010 called for a P100, 000 down payments plus two P50, 000 annual payments representing the value of initial franchise services rendered by T restaurant. In addition, the agreement required the franchisee to pay 8% of its gross revenues to the franchisor. The restaurant opened early in 2010 and its sales for the year amounted to P750, 000.

Assuming a 12% interest rate is appropriate, T's 2010 total revenue will be (PV of annuity of P1 at 12%for two periods is 1.6901)