1. Ivanhoe company recently signed a lease for new office building, for lease period of 12 years . Under the lease agreement, a security deposit of $14,870 is made, with the deposit to be returned at the expiration of the lease, with interest compounded at 5% per year.

What amount will the company receive at the time the lease expires.

2) Shamrock Corporation, having recently issued a $20,101,200, 15 year bond issue, is committed to make annual sinking fund deposit of 620,500. The deposits are made on day of each year and yield a return of 10%.

Determine the amount of deficiency.

3) Under the terms of his salary agreement, President Leon walters has an option of receiving either immediate bonus of $77,000 or a deferred bonus of $ 98,000 payable.

Ignoring tax consideration and assuming a relevant interest rate 4%, which from settlement should walters interest rate of 4%, which form of settlement should walters accept.