Question 1. ABC Company issued $500,000 of 4%, 10-year bonds on January 1, 2010. Interest is to be paid semi-annually on December 31. The market rate at the time of the bond issue is 2%. ABC uses the effective interest method of amortization. What is the selling price of bonds? (Round your answer to zero decimal places)

Question 2. You placed a bet on Chicago for this year's Super Bowl. To cover your loss, you agree to pay your bookie $612.52 in three years. Assuming 7% interest, how much was your total bet? (Round you answer to zero decimal places)

Question 3: A company inadvertently produced 3,000 detective MP3 players. The players cost $12 each to produce. A recycler offers to purchase the defective players as they are for $8 each. The production manager reports that the defects can be corrected for $10 each, enabling them to be sold at their regular market price of $19 each. The company should:

(a) Correct the defect and sell them at the regular price.
(b) Sell the players to the recycler for $8 each.
(c) Sell 2,000 to the recycler and repair the rest.
(d) Sell 1,000 to the recycler and repair the rest.
(e) Throw the players away.

Question 4: Max purchased 350 shares of a Stock X at the beginning of the year at a price of $60. The stock paid a dividend of $1 per share and the stock price at the end of the year was $80. What was dollar return on investment?

a) $7,000
b) $6,650
c) $7,350
d) $8,350

Question 5. Calculate the Effective Annual Rate if Annual Percentage Rate is 12% and interest rate is compounded quarterly.