Chapter 8-10 In class assignment- submitted in Canvas

n	i	PV$1	FV$1	PVA	FVA
6	7%	0.66634	1.50073	4.76654	7.1533
72	0.58%	0.65785	1.52011	58.65444	89.1609

You want to buy a $40,000 car today and will be making monthly payments for the next six years. What is your car payment if your borrowing rate is 7%? $_______ (round to nearest dollar)

For 2 3 use the following:

The company issues 8% 20-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate of interest is 8.4%.

n	%	PV	PVA
20	8.0%	0.21455	9.8181
20	8.4%	0.19926	9.5327
40	4.0%	0.20829	19.7928
40	4.2%	0.19288	19.2171

Round to nearest dollar

What is the issue price of the bond? $_______

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

For 4 - 5 use the following

Best Incorporated
Balance Sheet (partial)
At December 31, Year 6
Stockholders' Equity:
Preferred stock (par $100)	$400,000
Common stock (par $0.01)	1,000
Additional Paid in capital	4,507,000
Total paid in capital	4,908,000
Retained earnings	1,254,000
Treasury stock (3,000 common shares)	(165,000)
Total stockholders' equity	$5,997,000

Assume that the company sold 1,000 shares of its treasury stock for $60 per share.

How much would additional paid in capital change? $_______

How much would Stockholders Equity change? $______