a)WAF will pay back a $30,000 loan by making equal annual payments at the end of each year for 6 years. The relevant interest rate is 12%. How much must they pay each year to pay back the loan? Indicate the tables used.

b)On January 1, K-Co. issued five-year bonds with a face value of $500,000 and a stated interest rate of 10% payable semiannually on January 1 & July 1. The bonds were sold when the market rate of interest was 8%.

Calculate the issue price of the bonds, indicate the tables used.

d)Bryon won a $60 million lottery. He can receive $3 million payments at the end of each of the next 20 years or he can receive a $25 million payment today. Ignoring tax considerations, and assuming a relevant annual interest rate of 12%, which alternative pays more? Indicate table used.