1. How much must be deposited on January 1, 2016 in a savings account paying 6% annually in order to make annual withdrawals of $30,500 at the end of the years 2016 and 2017? The present value of one at 6% for one period is .9434. 

$26,700
$55,002
$56,610
$60,000

2. What amount should be recorded as the cost of a machine purchased December 31, 2014, which is to be financed by making 8 annual payments of $9,000 each beginning December 31, 2015? The applicable interest rate is 8%. 

$51,719
$56,222
$63,000
$95,730

3. Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $39,000 for 15 years and to have a resale value of $75,000 at the end of that period. Assume a 10% rate and earnings at year end. The present value of 1 at 10% for 15 periods is .23939. The present value of an ordinary annuity at 10% for 15 periods is 7.60608. The future value of 1 at 10% for 15 periods is 4.17725. 

$296,637
$314,592
$371,637
$602,955

4. The market price of an $800,000, ten-year, 12% (pays interest semiannually) bond issue sold to yield an effective rate of 10% is (Points : 2)

$898,312.
$899,698.
$906,616.
$1,497,888.

5. James leases a ski chalet to his best friend, Janet. The lease term is five years with $20,000 annual payments due at the beginning of each year. What is the present value of the payments discounted at 8% per annum? 

$72,488.
$76,346.
$79,855.
$86,243.

6. On January 1, 2014, Haley Co. issued ten-year bonds with a face amount of $4,000,000 and a stated interest rate of 8% payable annually on January 1. The bonds were priced to yield 10%. Present value factors are as follows:
At 8%At 10%
Present value of 1 for 10 periods0.4630.386
Present value of an ordinary annuity of 1 for 10 periods6.7106.145
The total issue price of the bonds was (Points : 2)

$3,510,400.
$3,680,000.
$3,920,000.
$4,000,000.