A man borrowed 120 000 PHP and promised to pay anually for 5 years. The payment starts at X pesos. The man intends to increase his payment by 5 000 PHP at the end of each successive year. If the interest rate is 8% compounded annually, how much will the first payment be? If the man decides to pay anually with 8 equal payments with the first payment to be made after 4 years, what will be the amunt of the annual payment? Construct the cash flow diagram for both cases.

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