1. Janis Company signed a lease for a rental unit for 15 years. Under the lease agreement, a deposit of $6,000 is made. The deposit will be returned at the expiration of the lease with interest compounded at 4% per year. What amount will Jones Company receive at the time the lease expires?

2. Ross Gellar has an investment that pays him $35,000 every year for the next 20 years. However, he would like to sell his investment today to purchase a house. Assume the going market interest rate is 12%, how much would a wise investor be willing to pay for this investment?

3. Rachael Green wants to save up for a car which she will need when she graduates in 3 years. How much would she have to deposit today, if this amount would earn 10% per year, to have $23,000 when she graduates?

4. Joey and Phoebe decided to invest $2,000 every year for their daughters college fund until she is 18 (starting on her 1^st birthday and including her 18^th birthday). How much will be in the savings account on her 18^th birthday (after the last deposit) assuming an interest rate of 8%?

5. ABC Enterprises issues $400,000 of bonds paying a stated interest rate of 7%. The bonds are due in 10 years, with interest payable annually each year on Jan. 1^st. When the bonds are issued, other bonds of similar risk and maturity are paying 11% (i.e. the discount rate or market interest rate is 11%).

Calculate the issuance (selling) price of this bond: