A $700,000, 20-year, 8% bond issue was sold when the effective rate (market rate) was 10%. Interest was payable annually. Actuarial information for 20 periods follows:

8%

10%

Future value of 14.661

6.728

Present value of 10.21455

.14864

Future value of annuity of 145.762

57.275

Present value of annuity of 19.818

8.514

Required:

Compute the amount of cash that was received when the bonds were issued.