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Question 1 (1 point) You currently have $135,000 in your retirement account. You expect to contribute $12,500 into this account at the end of each
Question 1 (1 point) You currently have $135,000 in your retirement account. You expect to contribute $12,500 into this account at the end of each year for the next 40 years. If you earn an 8% return, compounded annually, how much money will you have in your account when you retire in 40 years? $3,238,306 $6,171,017 $2,932,810 $155,272 Question 2 (1 point) You have a three-year-old daughter and want to have $200,000 in her college fund when she starts college. You expect to earn a 7% return on her college-fund investments. If you want to deposit a single amount now, how much do you need to invest today to have $200,000 in her college fund when she starts college 15 years from now? $551,806 $72,489 $103,458 $147,542 Question 3 (1 point) On January 1, 2020, company issues 5-year bonds with a face value of $5,000,000 at par. The bonds have a stated annual interest rate of 5%. The journal entry to record the principal payment to bondholders on December 31, 2024 will include a: Debit to Cash of $5,000,000. Debit to Bonds Payable of $5,000,000. Credit to Bonds Payable of $5,000,000. Debit to Cash of $250,000. Question 4 (1 point) A company issues 10-year bonds with a face value of $4,000,000 and a stated annual interest rate of 5% on January 1, 2020. The bonds will pay interest annually on June 30 and December 31. The annual market rate of interest on the date of issue is 4%. How much Cash will the company receive when they issue the bonds? $3,691,131 $4,324,436 $4,000,000 $4,327,029
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