Jones Company issued a $100,000 face value, 3-year. 4% bond on January 1 Year 1. The bond pays interest annually on D rate of interest was 5%. Jones Company uses the effective interest method. The amount of cash proceeds (selling price) TVM tables - Scroll down) Present value of an annuity table: Periods 1 2 3 Interest Rates 4% 5% 6% 962 952 943 1.886 1.859 1.833 2.775 2.723 2673 3.630 3.546 3.465 4.452 4.329 4.212 7% .935 1.808 2.624 3.387 4.100 8% .926 1783 2.577 3.312 3.993 4 5 Present value table: Periods 1 Interest Rates 4% 5% 6% 962 1952 .943 .925 .907 890 .889 .864 840 .855 823 792 822 .784 747 2 7% .935 873 816 .763 .713 8% 926 .857 794 3 4 5 735 681 Future value of an annuity table: Periods 1 2 3 4 5 Interest Rates 4% 5% 1.000 1.000 2.040 2.050 3.122 3.153 4.246 4.310 5.416 5.526 6% 1.000 2.060 3.184 4.375 5.637 7% 1.000 2.070 3.215 4.440 5.751 8% 1.000 2.080 3.246 4.506 5.867 Periods 8% 1 1.000 2 3 Interest Rates 4% 5% 6% 1.000 1.000 2.040 2.050 2060 3.122 3.153 3.184 4.246 4.310 4.375 5.416 5.526 5.637 7% 1.000 2.070 3.215 4.440 5.751 1.000 2.080 3.246 4 506 5.867 4 5 Future value table: Periods 1 2 3 4 5 Interest Rates 4% 5% 1040 1.050 1.082 1.103 1125 1158 1.170 1216 1.217 1276 6% 1060 1124 1191 1.262 1338 7% 1.070 1.145 1.225 1311 1.403 89 1080 1.166 1260 1.360 1469 The amount of cash proceeds (selling price) of the bond on 1/1/Year 1 would be: Multiple Choice $95.000 $100,000 2 1.082 1.124 1.191 3 1.103 1.158 1.216 1.276 1.125 1.170 1.217 1.145 1.225 1.311 1.403 1.166 1.260 1.360 1.469 4 1.262 1.338 5 The amount of cash proceeds (selling price) of the bond on 1/1/Year 1 would be: Multiple Choice $95.000 $100,000 $97,292 $102,708 $105,000