What is the amount orear should invest now to earn

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Question -

(a) Orear Company earns 11% on an investment that will return $475,400, 9 years from now. What is the amount Orear should invest now to earn this rate of return?

(b) If Orear Company earns 12% on an investment that pays back $84,200 at the end of each of the next 9 years, what is the amount Orear Company invested to earn the 12% rate of return?

(c) Orear Company signed a lease for an office building for a period of 14 years. Under the lease agreement, a security deposit of $8,000 is made. The deposit will be returned at the expiration of the lease with interest compounded at 5% per year. What amount will Orear receive at the time the lease expires?

(d) Orear Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $78,900. The deposits are made at the end of each year into an account paying 5% annual interest. What amount will be in the sinking fund at the end of 10 years?

Reference no: EM132075017

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