I NEED ANSWERED ASAP

1 picture is the problem, last two pictures are the info needed to fill out and solve for the charts***APPENDIX C IS NOT NEEDED TO SOLVE***

THIS IS THE INFORMATION I WAS GIVEN TO SOLVE THE PROBLEM. THE QUESTIONS ARE FROM THE APPENDIX

e Home Insert Draw Page Layout Formulas Data Review View Help Share Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in PROTECTED VIEW Protected View. Enable Editi It looks like your stored credentials are out of date. Please sign in as ro******@ne******edu so we can verify SIGN IN TO OFFICE your subscription Sign A B D E F G J K Deduct (1) for wrong out of 40 = enter values = enter results of calculations Part 1 Do Appenddix "Chapter B" Problem.B.2 (Create-159, page B15) Only do parts a.and b. Bond Sinking Fund Deduct (1) for wrong out of 40 Note: To make bonds more attractive to investors, financial managers may elect to create a sinking fund (See Glossary - page 614) in hopes that the interest rate will be lower as well as creating an orderly way to acquire the cash needed to retire the bonds at their due date. The interest is estimated at 8% for 20 years Tilman Company Bond Sinking Fund a) Annual Payments Funds AppendC Annual Payments that will Needed Table Pay yield the funds @ 8% in 20 years -- Funds Needed Annual Pay Period (in yrs) Interest Earned b) Interest Eamed The interest earned over the 20 year period. = See periodic payment formula on page B-5 Part 2 Do Chapter "Appendix B" Problem .B.4 (Create-159, page B15) Only do parts a.and c. Present Value and Bond Prices Deduct (1) for wrong out of 40 Rural Gas & Electric Company Bond Issue Price at Effective Semiannual Interest a). Issue Price A Present Value of Principal Amount in 10 years Appendix (B)-20 periods Principle PV at 5% Amount eff int.rate PV of Future Principal Pay = B Present Value of Future semi-annual Interest Payments at 5% Principle Annual Periods Value interest per year B Annual Annuity PV of Future Interest Pay Factor (D) Interest Pay 2 = 3 4 Issue price is sum of PV of Future Principal and Future Interest, discounted @ 5% =(A+B) 5 See calculation of PV of principal and interest illustratated on page B12 3 Deduct 1-4 for poor answer 7 c) Explain why bonds were issued at a discount Start typing in column C (48,49,& 50) only, as needed. 3 9 0 1 Enter your answer by typing ONLY in column "C" When your sentence reaches column "K" and 2 you have more to say, continue on the next line in column "C". 3 54 Part 3 Do Appendix B Problem B6 (Create -160, page B16) 15 Capital Leases Only do parts c.and d., however, use salvage value from "b.4.": 56 Deduct (1) for wrong out of 40 Interstate Yanlinan Appendix B The Time Value of Money c. B-15 $20,000 is invested in a fund at the end of each of the next 10 years, at 8 percent interest, com- pounded annually. d. $80,000 is invested initially, plus $6,000 is invested annually at the end of each of the next three years, at 12 percent interest, compounded annually. OB-3, LOB-4 ROBLEM B.2 end Sinking Fund Tilman Company is required by a bond indenture to make equal annual payments to a bond sinking fund at the end of each of the next 20 years. The sinking fund will earn 8 percent interest and must accumulate to a total of $500,000 at the end of the 20-year period. a. Instructions Calculate the amount of the annual payments. b. Calculate the total amount of interest that will be earned by the fund over the 20-year period. Make the general journal entry to record redemption of the bond issue at the end of the 20-year period, assuming that the sinking fund is recorded on Tilman's accounting records at $500,000 and bonds payable are recorded at the same amount d. What would be the effect of an increase in the rate of return on the required annual payment? Explain. C. B-I, LOB-2, LOB-5 OBLEM B.3 ng Present Value Tables Use Table PV-1 (in Exhibit B-7) and Table PV-2 (in Exhibit B-9) to determine the present values of the following cash flows: a. $15,000 to be paid annually for 10 years, discounted at an annual rate of 6 percent. Payments are to occur at the end of each year. b. $9,200 to be received today, assuming that the money will be invested in a two-year certificate of deposit earning 8 percent annually. $300 to be paid monthly for 36 months, with an additional "balloon payment" of $12,000 due thhur interest rate of 1% percent. The first pay- e Home Insert Draw Page Layout Formulas Data Review View Help Share Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in PROTECTED VIEW Protected View. Enable Editi It looks like your stored credentials are out of date. Please sign in as ro******@ne******edu so we can verify SIGN IN TO OFFICE your subscription Sign A B D E F G J K Deduct (1) for wrong out of 40 = enter values = enter results of calculations Part 1 Do Appenddix "Chapter B" Problem.B.2 (Create-159, page B15) Only do parts a.and b. Bond Sinking Fund Deduct (1) for wrong out of 40 Note: To make bonds more attractive to investors, financial managers may elect to create a sinking fund (See Glossary - page 614) in hopes that the interest rate will be lower as well as creating an orderly way to acquire the cash needed to retire the bonds at their due date. The interest is estimated at 8% for 20 years Tilman Company Bond Sinking Fund a) Annual Payments Funds AppendC Annual Payments that will Needed Table Pay yield the funds @ 8% in 20 years -- Funds Needed Annual Pay Period (in yrs) Interest Earned b) Interest Eamed The interest earned over the 20 year period. = See periodic payment formula on page B-5 Part 2 Do Chapter "Appendix B" Problem .B.4 (Create-159, page B15) Only do parts a.and c. Present Value and Bond Prices Deduct (1) for wrong out of 40 Rural Gas & Electric Company Bond Issue Price at Effective Semiannual Interest a). Issue Price A Present Value of Principal Amount in 10 years Appendix (B)-20 periods Principle PV at 5% Amount eff int.rate PV of Future Principal Pay = B Present Value of Future semi-annual Interest Payments at 5% Principle Annual Periods Value interest per year B Annual Annuity PV of Future Interest Pay Factor (D) Interest Pay 2 = 3 4 Issue price is sum of PV of Future Principal and Future Interest, discounted @ 5% =(A+B) 5 See calculation of PV of principal and interest illustratated on page B12 3 Deduct 1-4 for poor answer 7 c) Explain why bonds were issued at a discount Start typing in column C (48,49,& 50) only, as needed. 3 9 0 1 Enter your answer by typing ONLY in column "C" When your sentence reaches column "K" and 2 you have more to say, continue on the next line in column "C". 3 54 Part 3 Do Appendix B Problem B6 (Create -160, page B16) 15 Capital Leases Only do parts c.and d., however, use salvage value from "b.4.": 56 Deduct (1) for wrong out of 40 Interstate Yanlinan Appendix B The Time Value of Money c. B-15 $20,000 is invested in a fund at the end of each of the next 10 years, at 8 percent interest, com- pounded annually. d. $80,000 is invested initially, plus $6,000 is invested annually at the end of each of the next three years, at 12 percent interest, compounded annually. OB-3, LOB-4 ROBLEM B.2 end Sinking Fund Tilman Company is required by a bond indenture to make equal annual payments to a bond sinking fund at the end of each of the next 20 years. The sinking fund will earn 8 percent interest and must accumulate to a total of $500,000 at the end of the 20-year period. a. Instructions Calculate the amount of the annual payments. b. Calculate the total amount of interest that will be earned by the fund over the 20-year period. Make the general journal entry to record redemption of the bond issue at the end of the 20-year period, assuming that the sinking fund is recorded on Tilman's accounting records at $500,000 and bonds payable are recorded at the same amount d. What would be the effect of an increase in the rate of return on the required annual payment? Explain. C. B-I, LOB-2, LOB-5 OBLEM B.3 ng Present Value Tables Use Table PV-1 (in Exhibit B-7) and Table PV-2 (in Exhibit B-9) to determine the present values of the following cash flows: a. $15,000 to be paid annually for 10 years, discounted at an annual rate of 6 percent. Payments are to occur at the end of each year. b. $9,200 to be received today, assuming that the money will be invested in a two-year certificate of deposit earning 8 percent annually. $300 to be paid monthly for 36 months, with an additional "balloon payment" of $12,000 due thhur interest rate of 1% percent. The first pay