Buffalo Company recently signed a lease for a new office building, for a lease period of 11 years. Under the lease agreement, a security deposit of $12,650 is made, with the deposit to be returned at the expiration of the lease, with interest compounded at 5% per year. What amount will the company receive at the time the lease expires? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The company will receive $__________________

Carla Corporation, having recently issued a $20,141,900, 15-year bond issue, is committed to make annual sinking fund deposits of $622,900. The deposits are made on the last day of each year and yield a return of 10%. Will the fund at the end of 15 years be sufficient to retire the bonds? Future value of an ordinary annuity $___________________

Will funds be sufficient? Yes or No

Carla Corporation, having recently issued a $20,141,900, 15-year bond issue, is committed to make annual sinking fund deposits of $622,900. The deposits are made on the last day of each year and yield a return of 10%. Determine the amount of deficiency. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The company will receive $__________________

Carla Corporation, having recently issued a $20,141,900, 15-year bond issue, is committed to make annual sinking fund deposits of $622,900. The deposits are made on the last day of each year and yield a return of 10%. Will the fund at the end of 15 years be sufficient to retire the bonds? Future value of an ordinary annuity $___________________

Will funds be sufficient? Yes or No

Carla Corporation, having recently issued a $20,141,900, 15-year bond issue, is committed to make annual sinking fund deposits of $622,900. The deposits are made on the last day of each year and yield a return of 10%. Determine the amount of deficiency. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Deficiency $_______________

Under the terms of his salary agreement, president Newman Walters has an option of receiving either an immediate bonus of $60,500, or a deferred bonus of $77,000 payable in 10 years. Ignoring tax considerations and assuming a relevant interest rate of 4%, which form of settlement should Walters accept? Present value of deferred bonus $ ____________

Accept Deffered Bonus in 10 years or Accept Bonus Now Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $2,458,000, or it can make annual payments of $336,800 for 15 years, each payment due on the last day of the year.

Which method of payment do you recommend, assuming an expected effective interest rate of 11% during the future period? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present Value of annual payments $__________ Recommended payment method should be Immediate Payment or Annual Payments?