1. ABC Company sold the rights to use one of their patented processes that

will result in them receiving cash payments of $2,000 at the end of each

of the next five years, a $15,000 cash payment at the end of the sixth

year, and a $10,000 cash payment at the end of the seventh year.

Calculate the total present value of these payments assuming the interest

rate is 5% compounded annually.

2. Jean Smith intends to deposit $10,000 into her bank account at the end of

every three months for four years. Assume that Jean earns 12% interest

compounded quarterly on her bank account.

Calculate the amount Jean will have in her account in four years.

3. On January 1, 2019, ABC Company borrowed $120,000 from the bank. The loan

is a 7-year note payable that requires annual payments of $24,500 every

December 31, beginning December 31, 2019. Assume the loan has an interest

rate of 10% compounded annually.

Calculate the amount of the note payable at December 31, 2020 that would

be classified as a current liability.