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3. Johnson Corporation rents a store front for 10 years with annual rental payments of $200,000 to be made at the end of every year.
3. Johnson Corporation rents a store front for 10 years with annual rental payments of $200,000 to be made at the end of every year. Which table would you use to calculate the future value of these rental payments? annuity table (lpt) 4. A company invests an amount for 10 years at $% interest, compounded quarterly. What % and period would you use to look up on the time value tables? % 8 Periods 4 (lpt) 5. An investment that earns 8% for 6 years was deposited into in the amount of $400,000. What is the amount of the investment after the 6 years? (lpt) 6. Starting in 2013, Johnson Corporation will deposit $4,000 every December 31 st for the next 4 years. If the investment earns 8%, what amount will be in the investment fund on December 31, 2016 ? (lpt) 7. Johnson Corporation sold $20,000 of its 5% bonds to Nelson Company for $15,000 to yield 2%. What amount should be reported as the interest expense for year 1 ? Extra Credit (3pts) What is the selling price of a $100,000,5 vear, 10% bond, sold to yield an effective rate of 8% ? Payments are made semi-annually
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