False Question 35 (2 points) It is now January 1, 2020. A man wants to start making equal payments into a retirement fund each year beginning January 1, 2021 for 20 years, eventually accumulating to $500,000. The fund will earn 5% per year with annual compounding. To work this problem you would multiply $500,000 times the Present Value of an ordinary Annuity Factor for 20 years and 5%. True False Question 36 (2 points) Factoring an Accounts Receivable means you have turned it over to a collection agency to try to get the customer to pay you. True False A..nadian 27 12 nninte! 18 21 Question 33 (2 points) A company issues a $100,000 bond payable which will have semi-annual payments of interest over 5 years. The face rate of interest on the bond is 6%. The market rate is now 8%. Therefore, without doing any computations it is obvious that this bond will sell for a premium. 24 True False 27 30 Question 34 (2 points) A company will issue a 10 year bond payable for $500,000. Interest is payable every 6 months. The face rate is stated as 5%. The market rate is 6%. The price is computed as the Present Value of the Maturity plus the Present Value of the Interest Payments. T or False: To compute the PV of the interest portion of the bond you would multiple $15000 times the Present Value of an Ordinary Annuity for 3% and 20 periods. 3 True False