Concept of Equivalence,Future&Present Worth, Cashflows 1. A mother wants to insure the education of his son. On the 7th birthday of the son, he invest in a fund the amount of P 200,000.00 earning at...

Extracted text: Concept of Equivalence,Future&Present Worth, Cashflows 1. A mother wants to insure the education of his son. On the 7th birthday of the son, he invest in a fund the amount of P 200,000.00 earning at 6.5% interest rate compounded monthly; on the 10th birthday another P 200,000.00 at an interest rate of 7.3% compounded monthly; on the 15th birthday another sum of money at 8% compounded monthly. If on the 18th birthday the son have a total withdrawable amount of P1.3M, how much is the 3rd investment? 2. What is the future worth of P10,000 invested every month for five years at 8% interest rate compounded monthly? 3. Two proposals are being considered for building a power plant. Proposal A: The construction of a new plant costing 10M today. Proposal B: Construction of a smaller plant now for 6.8M and the expansion costing 5M after 5 years If money is worth 7.5% compounded quarterly, which proposal is better.