Engineering Economics

Topic: Uniform Arithmetic Gradient/Uniform Geometric Gradient

1.A certain amount was borrowed today and to be paid for 5 years. The rst payment was P300,000 made at the end of the rst year and the succeeding payments to be increased by P32,000 per year. How much is the borrowed amount? 2. An employee was promised by his boss that he will have a salary of P300,000 on his rst month and will be increased by 30.6% on the succeeding months. What will be his total salary for one year if interest is 24% compounded annually