ALLEN

Problem 19:

A company borrowed $300,000 cash from the bank by signing a 5-year, 8% installment note. The present value factor for an annuity at 8% for 5 years is 3.9927. Each annuity payment equals $75,137. The present value of the note is:  Show your calculations. A. $75,137 B. $94,013 C. $300,000 D. $375,685 E. $1,197,810

Answer:

Problem 21:

A company issues at 9% bonds at par with a par value of $100,000 on April 1, which is 4 months after the most recent interest date. How much total cash interest is received on April 1 by the bond issuer?  Show your calculations. A. $750 B. $5,250 C. $1,500 D. $3,000 E. $6,000