Instruction: Show your solution to the following problems regarding simple interest, compound interest and cash flow diagrams. 1. Determine the ordinary simple interest on PHP 75,000 for 5 months and 15 days if the rate of interest is 1.75%. Determine the value of your money at the end of 6 months. 2. Determine the ordinary and exact simple interest on PHP 12,000 for the period from February 13 to November 2, 2017 if the interest is 10.5%. 3. Gina decides to purchase a grass mowing machine 2 months from today. She has a choice to either buy it from a local store which applies a compound interest of 10% compounded annually or buy it from a secondhand store which applies a simple interest of 15%. If the value of the machine 2 months from today is expected to be $150, to which store must she buy the machine? 4. You borrow PHP 10,000 from a friend one year ago. You promised to pay him this year by PHP 5,000 and the remaining balance next year. Using the cash flow diagram below, determine the value of the interest rate if the interest applied by your friend is a compounding interest compounded annually. 10,000+ (NOW) 1 2 EOY 0 1=? co. annually 5,000 Remaining Balance =