Chapter 8-10 In class assignment- submitted in Canvas

n	i	PV$1	FV$1	PVA	FVA
5	3%	0.86261	1.15927	4.57971	5.3091
60	0.25%	0.86087	1.16162	55.65236	64.6467

1. You want to have $27,000 at the end of 5 years to buy a new car. How much should you save each month to achieve your goal if you can earn 3%? $_______ (round to nearest dollar)

2. You want to buy a $27,000 car today and will be making monthly payments for the next 5 years. What is your car payment if your borrowing rate is 3%? $_______ (round to nearest dollar)

n	i	PV$1	FV$1	PVA	FVA
5	7%	0.71299	1.40255	4.10020	5.7507

3. You invest $10,000 today for 5 years. Your average investment rate is 7% compounded annually. What will be the is the value of your investment at the end of the 5 year period? $_______ (round to nearest dollar)

For 4 6 use the following:

The company issues 5% 10-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate of interest is 4.8%.

n	%	PV	PVA
10	4.80%	0.62573	7.7973
10	5.00%	0.61391	7.7217
20	2.40%	0.62230	15.7374
20	2.50%	0.61027	15.5892

ROUND YOUR ANSWERS TO NEAREST DOLLAR

4. What is the issue price of the bond? $_______

5. What is the interest expense for the first interest payment? $_____

6. What is the bond liability after the first interestpayment? $_______

For 7 - 10 use the following

Best Incorporated
Balance Sheet (partial)
At December 31, Year 6
Stockholders' Equity:
Preferred stock (par $100)	$100,000
Common stock (par $0.10)	12,000
Additional Paid in capital	1,192,000
Total paid in capital	1,304,000
Retained earnings	425,000
Treasury stock (3,000 common shares)	(36,000)
Total stockholders' equity	$1,693,000

Assume that the company sold 2,000 shares of its treasury stock for $14 per share.

7. How much would additional paid in capital change? $_______

8. How much would Stockholders Equity change?$_______

9. How many shares of Common stock would be outstanding after the reissuance?_______shares

10. How many shares of Commons stock would be issued after the reissuance?_______shares

PLEASE HELP & SHOW WORK I NEED HELP TO PASS CLASS