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6. A machine that has a five year life has a first cost of $50,000, an operating cost of $4,000 per month and a $10,000 salvage value. At an interest rate of 12% per year compounded monthly, the capitalized cost of the machine is nearest to:

A) $17,303

B) $144,188

C) $297,100

D) $498,800

7. For an 8%, $10,000 bond with interest payable quarterly, the amount and frequency of the interest payments is:

A) $800 paid one time per year

B) $800 paid every 3 months

C) $200 paid every 4 months

D) $200 paid every 3 months

8. Interest payments on a bond are $300 every six months. If the face value of the bond is $10,000, the bond interest rate is:

A) 3% per year

B) 3% per year compounded semiannually

C) 6% per year compounded semiannually

D) 12% per year compounded quarterly