On June 30,2024 , Single Computers issued 6% stated rate bonds with a face amount of $200 million. The bonds mature on June 30 , 2039 (15 years). The market rate of interest for similar bond issues was 5% ( 2.5% semiannual rate) Interest is paid semiannually (3\%) on June 30 and December 31, beginning on December 31, 2024. Note: Use tables, Excel, or a financial calculator. (FV of S1, PV of S1. FVA of S1. PVA of S1. FVAD of \$1 and PVAD of S1) Required: 1. Determine the price of the bonds on June 30,2024 . 2. Calculate the interest expense Single reports in 2024 for these bonds using the effective interest method. Complete this question by entering your answers in the cabs below: Deternise the price of the bonds on June 30,2024 On September 30,2024 , the Techno Corporation issued 8% stated rate bonds with a face amount of $300million. The bonds mature on September 30, 2044 ( 20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30 . Required: Determine the price of the bonds on September 30,2024 Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount, not in millions. (FV of S1. PV of \$1. FVA of S1, PVA of \$1, FVAD of $1 and PVAD of 511 President Company purchased merchandise from Captain Corporation on September 30, 2024. Payment was made in the form of a noninterest-bearing note requiring President to make six annual payments of $5,000 on each September 30 , beginning on September 30,2027 Required: Calculate the amount at which President should record the note payable and corresponding purchase on September 30, 2024 assuming that an interest rate of 10% properly reflects the time value of money in this situation Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. Round your Answer each of the following independent questions. 1. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $64,000 cash immediately, (2) $20,000 cash immediately and a six-year annual annuity of $8,000 beginning one year from today, or (3) a six-year annual annuity of $13,000 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $100,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of \$1, PV of S1, EVA of S1, PVA of S1, FVAD of S1 and PVAD of S1) Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: 1. Pay $35,000 today for the car. 2. Pay $4,000 at the end of each quarter for three years. Required: 1-a. Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value. 1-b. Which option gives him the lower cost? Conslete this question by entering your anumers in the tals below. You would like to start saving for retirement. Assuming you are now 25 years old and want to retire at age 55 , you have 30 years to watch your investment grow. You decide to invest in the stock market, which has earned about 13% per year over the past 80 years and is expected to continue at this rate. You decide to invest $2,000 at the end of each year for the next 30 years. Required: Calculate how much your accumulated investment is expected to be in 30 years. Note: Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places. FV ofSL, PV of S5, DVA ofSL, and PVA of \$1) On June 30,2024 , Single Computers issued 6% stated rate bonds with a face amount of $200 million. The bonds mature on June 30 , 2039 (15 years). The market rate of interest for similar bond issues was 5% ( 2.5% semiannual rate) Interest is paid semiannually (3\%) on June 30 and December 31, beginning on December 31, 2024. Note: Use tables, Excel, or a financial calculator. (FV of S1, PV of S1. FVA of S1. PVA of S1. FVAD of \$1 and PVAD of S1) Required: 1. Determine the price of the bonds on June 30,2024 . 2. Calculate the interest expense Single reports in 2024 for these bonds using the effective interest method. Complete this question by entering your answers in the cabs below: Deternise the price of the bonds on June 30,2024 On September 30,2024 , the Techno Corporation issued 8% stated rate bonds with a face amount of $300million. The bonds mature on September 30, 2044 ( 20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30 . Required: Determine the price of the bonds on September 30,2024 Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount, not in millions. (FV of S1. PV of \$1. FVA of S1, PVA of \$1, FVAD of $1 and PVAD of 511 President Company purchased merchandise from Captain Corporation on September 30, 2024. Payment was made in the form of a noninterest-bearing note requiring President to make six annual payments of $5,000 on each September 30 , beginning on September 30,2027 Required: Calculate the amount at which President should record the note payable and corresponding purchase on September 30, 2024 assuming that an interest rate of 10% properly reflects the time value of money in this situation Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. Round your Answer each of the following independent questions. 1. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $64,000 cash immediately, (2) $20,000 cash immediately and a six-year annual annuity of $8,000 beginning one year from today, or (3) a six-year annual annuity of $13,000 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $100,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of \$1, PV of S1, EVA of S1, PVA of S1, FVAD of S1 and PVAD of S1) Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: 1. Pay $35,000 today for the car. 2. Pay $4,000 at the end of each quarter for three years. Required: 1-a. Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value. 1-b. Which option gives him the lower cost? Conslete this question by entering your anumers in the tals below. You would like to start saving for retirement. Assuming you are now 25 years old and want to retire at age 55 , you have 30 years to watch your investment grow. You decide to invest in the stock market, which has earned about 13% per year over the past 80 years and is expected to continue at this rate. You decide to invest $2,000 at the end of each year for the next 30 years. Required: Calculate how much your accumulated investment is expected to be in 30 years. Note: Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places. FV ofSL, PV of S5, DVA ofSL, and PVA of \$1)
