The following factors from the present value tables may be of use when answering the next 2 questions:

Present value of $1.00

	4%	5%	6%
5 periods	0.8219	0.7835	0.7473
10 periods	0.6756	0.6139	0.5584

Present value of an Annuity of $1.00.

	4%	5%	6%
5 periods	4.4518	4.3295	4.2124
10 periods	8.1109	7.7217	7.3601

An investor wishes to have $1,000 available in five years. How much should be invested today, if the current interest rate is 5 percent (round to the nearest dollar)?

A) $784

B) $614

C) $433

D) $772

On January 1, 2015, Sawyer Company issued $100,000 of its 10 year bonds payable to generate cash for expansion. The bonds will retire in 10 years, and have a stated rate of 5 percent. Interest will be paid annually each December 31, starting December 31, 2015.

The market rate is 4%, what amount of cash would Sawyer receive at issue (round to nearest whole dollar)?

A) $100,000

B) $108,115

C) $67,560

D) $92,277