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5. On January 1, 2006, Vigeland Company completed the following transactions (assumicu percent annual interest rate): a. Bought a delivery truck and agreed to pay

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5. On January 1, 2006, Vigeland Company completed the following transactions (assumicu percent annual interest rate): a. Bought a delivery truck and agreed to pay $30,000 at the end of three years. What is the cost of the truck that should be recorded at the time of purchase? RAM b. Established a savings account by depositing a single amount that will increase to $40,000 at the end of seven years. What single amount must be deposited in this account on January 1, 2006? C. Decided to lease a certain property for 10 years at the following annual rentals, payable at the end of each year. The interest rate is 10%. a. Years 1 and 2 - $1,000 per year b. Years 3 to 6 - $2,000 per year c. Years 7 to 10 - $2,500 per year What is the present value of the lease? 6. Justin Nikolich bought a car for $4,500, and agreed to pay for it in 12 equal monthly installments with interest of 12% per year. What is the monthly payment? 5. On January 1, 2006, Vigeland Company completed the following transactions (assumicu percent annual interest rate): a. Bought a delivery truck and agreed to pay $30,000 at the end of three years. What is the cost of the truck that should be recorded at the time of purchase? RAM b. Established a savings account by depositing a single amount that will increase to $40,000 at the end of seven years. What single amount must be deposited in this account on January 1, 2006? C. Decided to lease a certain property for 10 years at the following annual rentals, payable at the end of each year. The interest rate is 10%. a. Years 1 and 2 - $1,000 per year b. Years 3 to 6 - $2,000 per year c. Years 7 to 10 - $2,500 per year What is the present value of the lease? 6. Justin Nikolich bought a car for $4,500, and agreed to pay for it in 12 equal monthly installments with interest of 12% per year. What is the monthly payment

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