CHAPTER 6 INSTRUCTIONS: Answer each letter in the following problems. Show work when necessary. Problem 1 a) How much must be invested now to receive $40,000 for eight years if the first $40,000 is received today and the rate is 10%? b) Find the present value of an investment in equipment if it is expected to provide annual savings of $40,000 for 12 years and to have a resale value of $75,000 at the end of that period. Assume an interest rate of 6% and that savings are realized at year end. c) On January 1, 2020 Trager Co. issued ten-year bonds with a face value of $700,000 and a stated interest rate of 10% payable semiannually on July 1 and January 1. The bonds were sold to yield 12%. Calculate the issue price of the bonds