Use the following tables to calculate the present value of a $672,000, 6%, 6-year bond that pays $40,320 ($672,000 x 6%) interest annually, if the market rate of interest is 7%.Present Value of $1 at Compound InterestPeriods6%7%10.943400.934580.9090920.890000.873440.8264530.839620.816300.7513140.79209 0.762900.6830150.747260.712990.6209260.704960.666340.5644770.665060.622750.5131680.627410.582010.4665190.591900.543930.424100.558390.508350.3855410Present Value of Annuity of $1 at Compound InterestPeriods1234567895%100.952380.907030.863840.822700.783530.746220.710680.676840.644610.613915%0.952381.859412.723253.545954.329485.075695.786376.463217.107827.721736%0.943401.833392.673013.465114.212364.917325.582386.209796.801697.360097%0.934581.808022.6243210%10%3.387214.100204.766545.389295.971306.515235.759027.023586.14457Round your intermediate calculations and final answer to the nearest whole dollar.0.909091.735542.486853.169873.790794.355264.868425.33493

Formula: Present value of the bonds=Present value of the face value of the bonds+Present value of…

Use the following tables to calculate the present value of a $672,000, 6%, 6-year bond that pays $40,320 ($672,000 x 6%) interest annually, if the market rate of interest is 7%. Present Value of $1 at Compound Interest Periods 5% 6% 7% 1 0.95238 0.94340 0.93458 0.90909 2 0.90703 0.89000 0.87344 0.82645 3 0.86384 0.83962 0.81630 0.75131 4 0.82270 0.79209 0.76290 0.68301 5 0.78353 0.74726 0.71299 0.62092 6 0.74622 0.70496 0.66634 0.56447 7 0.71068 0.66506 0.62275 0.51316 8 0.67684 0.62741 0.58201 0.46651 9 0.64461 0.59190 0.54393 0.42410 10 0.61391 0.55839 0.50835 0.38554 Present Value of Annuity of $1 at Compound Interest Periods 5% 6% 7% 1 0.93458 2 1.80802 3 2.62432 4 3.38721 4.10020 0.95238 0.94340 1.85941 1.83339 2.72325 2.67301 3.54595 3.46511 4.32948 4.21236 5.07569 4.91732 4.76654 5.78637 5.58238 5.38929 6.46321 6.20979 5.97130 7.10782 6.80169 7.72173 7.36009 10% 10% 0.90909 1.73554 2.48685 3.16987 3.79079 4.35526 5 6 7 4.86842 8 5.33493 9 6.51523 5.75902 10 7.02358 6.14457 Round your intermediate calculations and final answer to the nearest whole dollar.

Use the following tables to calculate the present value of a $672,000, 6%, 6-year bond that pays $40,320 ($672,000 x 6%) interest annually, if the market rate of interest is 7%. Present Value of $1 at Compound Interest Periods 5% 6% 7% 1 0.95238 0.94340 0.93458 0.90909 2 0.90703 0.89000 0.87344 0.82645 3 0.86384 0.83962 0.81630 0.75131 4 0.82270 0.79209 0.76290 0.68301 5 0.78353 0.74726 0.71299 0.62092 6 0.74622 0.70496 0.66634 0.56447 7 0.71068 0.66506 0.62275 0.51316 8 0.67684 0.62741 0.58201 0.46651 9 0.64461 0.59190 0.54393 0.42410 10 0.61391 0.55839 0.50835 0.38554 Present Value of Annuity of $1 at Compound Interest Periods 5% 6% 7% 1 0.93458 2 1.80802 3 2.62432 4 3.38721 4.10020 0.95238 0.94340 1.85941 1.83339 2.72325 2.67301 3.54595 3.46511 4.32948 4.21236 5.07569 4.91732 4.76654 5.78637 5.58238 5.38929 6.46321 6.20979 5.97130 7.10782 6.80169 7.72173 7.36009 10% 10% 0.90909 1.73554 2.48685 3.16987 3.79079 4.35526 5 6 7 4.86842 8 5.33493 9 6.51523 5.75902 10 7.02358 6.14457 Round your intermediate calculations and final answer to the nearest whole dollar.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2.
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