$($A$)$ Buck has land that he wants to sell. The land has an original cost of $$50,000.$ Buck accepts in exchange $$10,000$ cash and a note receivable with a principal balance of $$50,000.$ The note pays interest at only $1\%$ per year, with the principal due in $5$ years. If the market rate of interest for this note receivable is $8\%$ per year, what is Buck$$s gain or loss on sale?

N$=5$

I$=8\%$

PMT $=$

FV $=$

PV $=50,000$

Work $($if necessary$)$ Answer

$($B$)$ The DePuy Company is going to be issuing bonds with a principal amount of $$1,000.$ The bonds pay $4\%$ interest, payable semi$-$annually, with payments on July $1$ and Jan. $1.$ The bonds will mature in $20$ years. At the time the bonds are to be issued, the market rate of interest is $6\%.$ How much money will DePuy receive at the time the bonds are issued?

N$=$

I$=$

PMT $=$

FV $=$

PV $=$

Work $($if necessary$)$ Answer

$($C$)$ Chase wants to save money to become a millionaire by age $42(20$ years$).$ Chase currently has $$50,000$ to put into an investment. He can save money every year to put into an investment $($at the end of the year$).$ If the investment earns $5\%$ per year, how much will Chase need to save to reach his goal?

N$=$

I$=$

PMT $=$

FV $=$

PV $=$

Work $($if necessary$)$ Answer