Use the following 8% interest factors for questions 2 through 5.

Present Value of Future Value of

Ordinary Annuity Ordinary Annuity

7 periods 5.2064 8.92280

8 periods 5.7466 10.63663

9 periods 6.2469 12.48756

2. What will be the balance on September 1, 2016 in a fund which is accumulated by making $8,000 annual deposits each September 1 beginning in 2009, with the last deposit being made on September 1, 2016? The fund pays interest at 8% compounded annually.

3. If $5,000 is deposited annually starting on January 1, 2010 and it earns 8%, what will the balance be on December 31, 2017?

4. Korman Company wishes to accumulate $300,000 by May 1, 2018 by making 8 equal annual deposits beginning May 1, 2010 to a fund paying 8% interest compounded annually. What is the required amount of each deposit?

5. What amount should be recorded as the cost of a machine purchased December 31, 2010, which is to be financed by making 8 annual payments of $6,000 each beginning December 31, 2011? The applicable interest rate is 8%.

6. Jenks Company financed the purchase of a machine by making payments of $18,000 at the end of each of five years. The appropriate rate of interest was 8%. The future value of one for five periods at 8% is 1.46933. The future value of an ordinary annuity for five periods at 8% is 5.8666. The present value of an ordinary annuity for five periods at 8% is 3.99271. What was the cost of the machine to Jenks?