Solve:

INTEREST TABLES AND THEIR CONTENTS

https://edugen.wileyplus.com/edugen/player/references/index.uni?mode=help&xlinkobject=kieso9781118742976c06-fea-0004&itemid=nopolice

Exercise 6-6Presented below are three unrelated situations.

Swifty Company recently signed a lease for a new office building, for a lease period of10years. Under the lease agreement, a security deposit of $14,110is made, with the deposit to be returned at the expiration of the lease, with interest compounded at5% per year. Click here to view factor tables What amount will the company receive at the time the lease expires?(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

The company will receive

$

Nash Corporation, having recently issued a $20,139,700,15-year bond issue, is committed to make annual sinking fund deposits of $616,500. The deposits are made on the last day of each year and yield a return of10%. Click here to view factor tables Will the fund at the end of15years be sufficient to retire the bonds?

Future value of an ordinary annuity	$
Will funds be sufficient?	YesNo

Nash Corporation, having recently issued a $20,139,700,15-year bond issue, is committed to make annual sinking fund deposits of $616,500. The deposits are made on the last day of each year and yield a return of10%. Click here to view factor tables Determine the amount of deficiency.(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Deficiency

$

Under the terms of his salary agreement, president Newman Walters has an option of receiving either an immediate bonus of $77,000, or a deferred bonus of $98,000payable in10years. Click here to view factor tables Ignoring tax considerations and assuming a relevant interest rate of4%, which form of settlement should Walters accept?