Spiller Corporation plans to issue 10%, 5-year, $420,000 par value bonds payable that pay interest semiannually on June 30 and December 31. The bonds are dated January 1 of the current year and are issued on that date. (PV of $1, FV of $1, PVA of $1, and FVA of $1)

Note: Use appropriate factor(s) from the tables provided, round your "Table value" to 4 decimal places, and final answers to the nearest whole dollar.

If the market rate of interest for the bonds is 8% on the date of issue, what will be the total cash proceeds from the bond issue?

Could you please explain in detail how to find the interest (annuity) please?