Assume that ABC Company deposits $$90,000$ with First National Bank in an account earning interest at $6\%$ per annum, compounded semi$-$annually. What amount will ABC have in the account after five years if the interest is reinvested?a$.$$$120,953.$b$.$$$90,000.$c$.$$$117,000.$d$.$$$120,442.(2)$Mordica Company will receive $$400,000$ in $7$ years. If the appropriate interest rate is $10\%,$ the present value of the $$400,000$ receipt isa.$$204,000.$b$.$$$205,264.$c$.$$$604,000.$d$.$$$779,488.(3)$Dunston Company will receive $$500,000$ in a future year. If the future receipt is discounted at an interest rate of $10\%,$ its present value is $$256,580.$ In how many years is the $$500,000$ received?a$\mathrm{.}5$ yearsb$\mathrm{.}6$ yearsc$\mathrm{.}7$ yearsd$\mathrm{.}8$ years$(4)$What would you pay for an investment that pays you $$40,000$ at the end of each year for the next ten years and then returns a maturity value of $$600,000$ after ten years? Assume that the relevant interest rate for this type of investment is $8\%.$a$.$$$277,916.$b$.$$$268,404.$c$.$$$289,872.$d$.$$$546,317.(5)$Lucy and Fred want to begin saving for their child's college education. They estimate that they will need $$120,000$ in eighteen years. If they can earn $5\%$ per annum, how much must be deposited at the end of each of the next eighteen years to fund the education?a$.$$$4,648.$b$.$$$10,266.$c$.$$$9,929.$d$.$$$4,266.(6)$Use the following $8\%$ interest factors to answer this question:Present Value ofFuture Value ofOrdinary AnnuityOrdinary Annuity$7$ periods$5\mathrm{.}20648\mathrm{.}922808$ periods$5\mathrm{.}746610\mathrm{.}636639$ periods$6\mathrm{.}246912\mathrm{.}48756$What will be the balance on September $1,2027$ in a fund which is accumulated by making $$30,000$ annual deposits each September $1$ beginning in $2020,$ with the last deposit being made on September $1,2027?$ The fund pays interest at $8\%$ compounded annually.a$.$$$319,099$b$.$$$267,687$c$.$$$226,800$d$.$$$172,398(7)$Use the following $8\%$ interest factors to answer this question:Present Value ofFuture Value ofOrdinary AnnuityOrdinary Annuity$7$ periods$5\mathrm{.}20648\mathrm{.}922808$ periods$5\mathrm{.}746610\mathrm{.}636639$ periods$6\mathrm{.}246912\mathrm{.}48756$If $$12,000$ is deposited annually starting on January $1,2020$ and it earns $8\%,$ what will the balance be on December $31,2027?$a$.$$$107,075$b$.$$$115,640$c$.$$$127,640$d$.$ $$137,851(8)$A machine is purchased by making payments of $$16,000$ at the beginning of each of the next five years. The interest rate was $10\%.$ The future value of an ordinary annuity of $1$ for five periods is $6\mathrm{.}10510.$ The present value of an ordinary annuity of $1$ for five periods is $3\mathrm{.}79079.$ What is the cost of the machine?a$.$$$107,450$b$.$$$97,682$c$.$$$66,718$d$.$$$60,654(9)$Channing Corp. is purchasing new equipment with a cash cost of $$200,000$ for the assembly line. The manufacturer has offered to accept $$45,900$ payments at the end of each of the next six years. The interest rate that Channing implicit in this financing arrangement isa$\mathrm{.}8\%.$b$\mathrm{.}9\%.$c$\mathrm{.}10\%.$d$\mathrm{.}11\%.(10)$ Stech Co$.$ is issuing $$9$ million $12\%$ bonds in a private placement on July $1,2025.$ The bonds pay interest semi$-$annually on December $31$ and June $30$ of each year. The bonds mature in ten years. At the time of issuance, the market interest rate for similar types of bonds was $8\%.$ The amount of cash that will be received from the sale of the bonds isa.$$11,446,288.$b$.$$$13,500,000.$c$.$$$11,415,597.$d$.$$$11,507,486.$