1) Julia Monroe wants to create a fund today that will enable her to withdraw $33,600 per year for 7 years, with the first withdrawal to take place 5 years from today. If the fund earns 12% interest, how much must Julia invest today? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Investment amount

$

2)Buffalo Inc. issues $1,800,000 of 7% bonds due in 11 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 8%. What amount will Buffalo receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to 0 decimal places, e.g. 458,581.)

Amount received by Buffalo when bonds were issued

$

3)What would you pay for a $195,000 debenture bond that matures in 15 years and pays $9,750 a year in interest if you wanted to earn a yield of:

5%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Amount to Pay

$

4)Leon Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 9% basis that will enable him to withdraw $16,000 per year on June 30, beginning in 2024 and continuing through 2027. To develop this fund, Leon intends to make equal contributions on June 30 of each of the years 20202023.

(a)

How much must the balance of the fund equal on June 30, 2023, in order for Leon to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Balance of the fund equal on June 30, 2023

$