You have incurred a P50,000 debt in order to finish your graduate school studies. You pay an interest of 8% per annum on the loan. If you set aside P8,888 per year for the loan, how many years would you need to pay off the entire amount (principal plus interest)?

Fourth Item, 15 Points:

There are capital leases and operating leases. What are the differences between the two types?

For operating leases, describe the impact for the first year on:

1. The current ratio (current assets/current liabilities)
2. The debt-to-equity ratio
3. Net Income
4. Cash flow from operations