1.

Present and future value tables of $1 at 11% are presented below.

	PV of $1	FV of $1	PVA of $1	FVA of $1
1	0.90090	1.11000	0.90090	1.0000
2	0.81162	1.23210	1.71252	2.1100
3	0.73119	1.36763	2.44371	3.3421
4	0.65873	1.51807	3.10245	4.7097
5	0.59345	1.68506	3.69590	6.2278
6	0.53464	1.87041	4.23054	7.9129

Spielberg Inc. signed a $130,000 noninterest-bearing note due in four years from a production company eager to do business. Comparable borrowings have carried an 11% interest rate. What is the value of this debt at its inception?

Multiple Choice

$144,300.

$115,700.

$85,635.

$130,000.

2.

Present and future value tables of $1 at 9% are presented below.

	PV of $1	FV of $1	PVA of $1	FVAD of $1	FVA of $1
1	0.91743	1.09000	0.91743	1.0900	1.0000
2	0.84168	1.18810	1.75911	2.2781	2.0900
3	0.77218	1.29503	2.53129	3.5731	3.2781
4	0.70843	1.41158	3.23972	4.9847	4.5731
5	0.64993	1.53862	3.88965	6.5233	5.9847
6	0.59627	1.67710	4.48592	8.2004	7.5233

How much must be deposited at the beginning of each year to accumulate to $22,000 in five years if interest is at 9%?

Multiple Choice

$3,021.

$2,809.

$3,373.

$3,708.

3.

Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $360,000 per year for 25 years beginning today, or receiving one lump-sum amount today. Mary Alice can earn 5% investing this money. At what lump-sum payment amount would she be indifferent between the two alternatives? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided and round final answer to nearest whole dollar amount.)

Multiple Choice

$9,000,000

$5,073,818

$5,687,510

$5,327,510

4.

Present and future value tables of $1 at 3% are presented below:

N	FV $1	PV $1	FVA $1	PVA $1	FVAD $1	PVAD $1
1	1.03000	0.97087	1.0000	0.97087	1.0300	1.00000
2	1.06090	0.94260	2.0300	1.91347	2.0909	1.97087
3	1.09273	0.91514	3.0909	2.82861	3.1836	2.91347
4	1.12551	0.88849	4.1836	3.71710	4.3091	3.82861
5	1.15927	0.86261	5.3091	4.57971	5.4684	4.71710
6	1.19405	0.83748	6.4684	5.41719	6.6625	5.57971
7	1.22987	0.81309	7.6625	6.23028	7.8923	6.41719
8	1.26677	0.78941	8.8923	7.01969	9.1591	7.23028
9	1.30477	0.76642	10.1591	7.78611	10.4639	8.01969
10	1.34392	0.74409	11.4639	8.53020	11.8078	8.78611
11	1.38423	0.72242	12.8078	9.25262	13.1920	9.53020
12	1.42576	0.70138	14.1920	9.95400	14.6178	10.25262
13	1.46853	0.68095	15.6178	10.63496	16.0863	10.95400
14	1.51259	0.66112	17.0863	11.29607	17.5989	11.63496
15	1.55797	0.64186	18.5989	11.93794	19.1569	12.29607
16	1.60471	0.62317	20.1569	12.56110	20.7616	12.93794

Rosie's Florist borrows $400,000 to be paid off in eight years. The loan payments are semiannual with the first payment due in six months, and interest is at 6%. What is the amount of each payment?

Multiple Choice

$32,599.

$31,844.

$34,642.

$32,844.

5.

Cashmere Soap Corporation had the following items listed in its trial balance at 12/31/2018:

Currency and coins	$	610
Balance in checking account		3,200
Customer checks waiting to be deposited		2,900
Treasury bills, purchased on 11/1/2018, mature on 4/30/2019		4,000
Marketable equity securities		9,300
Commercial paper, purchased on 11/1/2018, mature on 1/30/2019		4,400

What amount will Cashmere Soap include in its year-end balance sheet as cash and cash equivalents?

Multiple Choice

$10,710.

$15,110.

$11,110.

$24,410.