Brock purchases equipment that has a fair value of $50,000. Brock pays $10,000 as a downpayment, and also issues a note with principal of $60,000, and pays interest of 1% annually, with the principal due in 10 years.  What is the market rate for the note? (round to the nearest .1%)

N=   I=   PMT =    FV =   PV =

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(B) Bryce Manufacturing is going to issue a $10,000 bond on Jan. 1, 2020. The bond pays interest of 6%, payable semi-annually on July 1 and January 1.  The bonds mature in 10 years.  The market rate of interest is 4% at the time of issue.  How much did Bryce receive from the issuance of the bonds? 

N=   I=   PMT =    FV =   PV =

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(C) Brennan is wanting to retire at 65 and have $3 million dollars at that point.  Right now Brennan is 35 and currently has $200,000 invested in the market (30 years).  If Brennan can earn 6%, how much will Brennan need to invest each year (end of the year) to reach his goal?

N= I= PMT =  FV = PV =

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Brocks question The present value of the note is equal to the sum of the present values of the futur... View the full answer