Using the appropriate interest table, provide the solution to each of the following four questions by computing the unknowns.

What is the amount of the payments that Alan Winslow must make at the end of each of 10 years to accumulate a fund of $81,800 by the end of the 10th year, if the fund earns 10% interest, compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Payment at the end of each year $_____________

Adams Hitchcock is 37 years old today and he wishes to accumulate $536,000 by his 60th birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his 37th through his 59th birthdays. What annual deposit must Adams make if the fund will earn 12% interest compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Annual deposit $________________

Carla Ross has $19,200 to invest today at 12% to pay a debt of $74,803. How many years will it take her to accumulate enough to liquidate the debt? (Round answer to 0 decimal places, e.g. 45.) _________________ years

Pearl Houston has a $27,600 debt that she wishes to repay 3 years from today; she has $19,645 that she intends to invest for the 3 years. What rate of interest will she need to earn annually in order to accumulate enough to pay the debt? (Round answer to 0 decimal places, e.g. 7%.) Rate of interest _____________%

Coronado Inc., a manufacturer of steel school lockers, plans to purchase a new punch press for use in its manufacturing process. After contacting the appropriate vendors, the purchasing department received differing terms and options from each vendor. The Engineering Department has determined that each vendors punch press is substantially identical and each has a useful life of 20 years. In addition, Engineering has estimated that required year-end maintenance costs will be $940 per year for the first 5 years, $1,940 per year for the next 10 years, and $2,940 per year for the last 5 years. Following is each vendors sales package.

Vendor A: $55,520 cash at time of delivery and 10 year-end payments of $16,740 each. Vendor A offers all its customers the right to purchase at the time of sale a separate 20-year maintenance service contract, under which Vendor A will perform all year-end maintenance at a one-time initial cost of $9,560.

Vendor B: Forty semiannual payments of $8,890 each, with the first installment due upon delivery. Vendor B will perform all year-end maintenance for the next 20 years at no extra charge.

Vendor C: Full cash price of $143,300 will be due upon delivery.

Assuming that both Vendors A and B will be able to perform the required year-end maintenance, that Coronados cost of funds is 10%, and the machine will be purchased on January 1, compute the following:

The present value of the cash flows for vendor A. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The present value of the cash outflows for this option is $_____________

The present value of the cash flows for vendor B. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The present value of the cash outflows for this option is $_____________

The present value of the cash flows for vendor C. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

The present value of the cash outflows for this option is $____________

From which vendor should the press be purchased?

The press should be purchased from Vendor A,B or C?