1. PPI needs to accumulate a $5 million trust fund with Idaho First Bank and Trust for the retirement of a bond issue in 10 years. The company plan to make 20 equal deposits of $186,078.54, starting in six months, to accumulate the $5 million fund. What annual interest rate is Idaho First Bank & Trust paying on the balance of the fund?

2, PPI also wants to accumulate $500,000 on December 31, Year 10, to retire some preferred stock. The company deposits $125,000 in a savings account on January 1, Year 1, which will earn interest at 6% compounded quarterly. PPI's controller asks you to figure out what additional amount PPI should deposit at the end of each quarter for 10 years to have the $500,000 available at the end of Year 10. The periodic deposits will also earn interest at the same 6% rate

3. PPI received a promissory note from a customer in the amount of $300,000. The note calls for payment of $100,000 of principal at the end of each year, starting in three years, plus interest at the rate of 14% per year on the unpaid balance. Only interest is due at the end of the first two years. To accelerate the collection, PPI immediately discounts the note with Idaho First Bank & Trust which is charging a 12% annual interest rate. How much will PPI receive in cash from the bank?

4. PPI wants to make five equal annual savings account deposits beginning June 1, Year 4, in order to be able to withdraw $75,000 at six annual intervals beginning June 1, Year 9. The amount on deposit with Idaho First Bank & Trust will earn 8% per annum until the account is exhausted. The controller asks you to compute the amount of the deposits that will be needed.

5.On June 30, Year 3, PPI purchased a machine for $100,000. The downpayment was $15,000, and the balance will be paid in 48 equal monthly payments, including interest at 18% compounded monthly. What is the amount of the monthly payment if the first payment is due one month from the date of the purchase?

6. On April 1, Year 2, PPI made a deposit of $100,000 in a fund and left the fund undisturbed for four years to earn compound interest at a rate which did not change during the four-year period. At the end of the four years, the fund had accumulated to $132,088.60. If interest was compounded quarterly, what was the rate of interest earned each quarter?

7.