What amount that needs to be invested today is closest to

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Problem 1: ABC Company issued $600,000, 10%, 10-year bonds on January 1, 2010 when the market interest rate was 12%. Interest is paid annually. Determine the selling price of the bond.

Option 1: 212,500

Option 2: 193,182

Option 3: 600,000

Option 4: 532,195

Problem 2: Your goal is to be able to withdraw $10,000 for each of the next three years beginning one year from today and also to withdraw $50,000 four years from today. The return on the investment is expected to be 3%. The amount that needs to be invested today is closest to:

Option 1: $89,755.

Option 2: $65,238.

Option 3: $110,383.

Option 4: $72,711.

Reference no: EM132768874

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