44) Calculate the present value of each of the amounts listed below: Future amount Time period Interest rate Present value 1. $10,000 5 years 8% $ 2....

44) Calculate the present value of each of the amounts listed below:

45) Jason Argo is making plans to finance a series of projects. Calculate the amount of the payments involved in each of the situations described below. Assume all payments are made at the end of the period. Round amounts to the nearest penny.

1. He will purchase a truck for $20,000, to be repaid in equal
semiannual
payments over the next 5 years. The bank has quoted an interest rate of 10%.

2. He will purchase a piece of land for $250,000. The seller would accept 20
annual
payments at 8%.

3. He will sell old equipment for $2,000. Joe is willing to accept
quarterly
payments for the next 3 years at an annual interest rate of 12%.

4. He will purchase land and building for $150,000, with a down payment of $30,000 and
semiannual
payments for the next 20 years at an interest rate of 8%.

46) Team Shirts issued 10-year bonds with a face value of $100,000. The bonds carry a 7% stated interest rate and pay interest once a year. They were issued when the market interest rate was 6%.

a. Calculate the present value of the bond issue.

b. Were these bonds issued at a premium or at a discount?

c. What is the amount of the premium or discount on the bond issue?

d. Calculate the amount of the amortization of the bond premium or discount for the first year, using the effective interest method.

47) Toby’s Wear issued 10-year bonds with a face value of $60,000. The bonds carry a 7% stated interest rate and pay interest once a year. They were issued when the market interest rate was 6%.

a. Calculate the present value of the bond issue.

b. Were these bonds issued at a premium or at a discount?

c. What is the amount of the premium or discount on the bond issue?

d. Calculate the amount of the amortization of the bond premium or discount for the first year, using the effective interest method.