You were scheduled to receive PHP 10,000 annually starting this year. It will increase by PHP 5,000 each year and you will be receiving such amounts for 6 years. If the interest rate is 10% compounded annually, determine the present value of the cash flow.

In problem number 1, suppose the increase is in terms of fixed percentage of 5% yearly not in terms of fixed amount of PHP 5,000. Using the same value of interest rate, determine the present value of the geometric gradient.