1-Paul won a lottery that will pay him $530000 at the end of each of the next twenty years. Assuming an appropriate interest rate is 7% compounded annually, what is the present value of this amount?

$136963.

$5614825.

$21727610.

$6007862.

2-On January 1, 2020, Bonita Industries sold to Sandhill Co. $790000 of its 10% bonds for $699384 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Bonita report as interest expense for the six months ended June 30, 2020?

$41963

$47400

$39500

$34969