A $700,000, 20-year, 8% bond issue was sold to yield 10%. Interest was payable annually. Actuarial information for 20 periods follows:
8%
10%
Future value of 14.661
6.728
Present value of 10.21455
.14864
Future value of annuity of 145.762
57.275
Present value of annuity of 19.818
8.514
Required:Compute the amount of cash that was received when the bonds were issued.
What will be an ideal response?
$580,832, computed as follows:??
| $700,000´0.14864= | $ 104,048 |
| $56,000´8.51356= | 476,759 |
| ? | $580,807 |
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