i PV$1 FV$1 PVA 5 4% 0.82193|1.21665 4.45182 5.4163 600.33% 0.819001.22100 54.2990766.2990 FVA 1. You want to have $32,000 at the end of 5 years make a down payment on a house. How much should you save each year to achieve your goal if you can earn 4%? $ nearest dollar) (round to 2. You want to buy a $32,000 car today and will be making monthly payments for the next 5 years. What is your car payment if your borrowing rate is 4%? $ nearest dollar) (round to n i PVS1 FV$1 PVA FVA 25% 0.90703|1.10250|1.85941|2.0500 3. You win a lotto drawing and your choice is to take the $50,000 lump sum now or wait and take a larger amount ($55,000) in 2 years (guaranteed). Your current investment rate is 5%. What is the best economic decision, take the lump sum today or wait 2 years? For 4 6 use the following: The company issues 5% 10-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate of interest is 4.9%. PV 10 5.00% 0.61391 7.7217 104.90% 0.61979 7.7594 20 2.50% 0.61027 15.5892 20 2.45% 0.61626|15.6630 PVA (round to nearest dollar) 4. What is the issue price of the bond? $ s. What is the interest expense for the first interest payment? $_ What is the bond liability after the first interest payment? $ For 7- 10 use the following For 7- 10 use the following Best Incorporated Balance Sheet (partial) At December 31, Year 6 Stockholders' Equity: Preferred stock (par $100) Common stock (par $0.01) Additional Paid in capital Total paid in capital Retained earnings Treasury stock (3,000 common shares) Total stockholders' equity $300,000 1,000 1,811,000 2,112,000| 565,200 (66.000) $2.611.200 Assume that the company sold 1,000 shares of its treasury stock for $25 per share. 7. How much would additional paid in capital change? $ How much would Stockholders Equity change? 9. How many shares of Commons stock would be issued after the reissuance? 8. shares 10. How many shares of Common stock would be outstanding after the reissuance? shares