On January 2, 2013, ABC Company issued bonds in exchange for a building. Assuming an interest rate of 10%, what amount must ABC invest on January 2,2013 to assure that it will have $40,000,000 on hand in a sinking fund to retire the bonds on December 31, 2020?

2 To pay for his son's college tuition, Eli Alan invested $20,000 a year, for four years, at an interest rate of 12%. How much will Mr. Alan earned by the end of the fourth year?

3. Under her deferred compensation agreement with her employer, when she

retires, Mary Chang will receive a payment of $50,000 a year for 5 years.Assuming an interest rate of 12%, what is the value of those payments, on the day Ms. Chang retires, if she receives her first payment on that day?

4. Given the information in No, 3 above, what is the value of those payments if Ms,Chang receives her first payment one year after her retirement date?

5. On June 1, 2013, The DEF Corporation has decided to place $50,000 of its available cash in an investment that pays interest of 4%, How much will DEF have accumulated at the end of 12 years?