5 Part 1 of 4 Required information P9-11 (Algo) Computing Present Values LO9-7, 9-8 (The following information applies to the questions displayed below. 5 points On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) eBook a. Promised to pay a fixed amount of $7,200 at the end of each year for seven years and a one-time payment of $117,400 at the end of the 7th year. b. Established a plant remodeling fund of $491,800 to be available at the end of Year 8. A single sum that will grow to $491,800 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $76,200 at the end of the first year, $113,700 at the end of the second year, and $151,200 at the end of the third year. d. Purchased a $176,000 machine on January 1 of this year for $35,200 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year. Print References P9-11 Part 1 Required: 1. In transaction (a), determine the present value of the debt. (Round your answer to nearest whole dollar.) Present value 6 Required information Part 2 of 4 P9-11 (Algo) Computing Present Values LO9-7, 9-8 (The following information applies to the questions displayed below.) 5 points On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) eBook a. Promised to pay a fixed amount of $7,200 at the end of each year for seven years and a one-time payment of $117,400 at the end of the 7th year. b. Established a plant remodeling fund of $491,800 to be available at the end of Year 8. A single sum that will grow to $491,800 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $76,200 at the end of the first year, $113,700 at the end of the second year, and $151,200 at the end of the third year. d. Purchased a $176,000 machine on January 1 of this year for $35,200 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year. Print References P9-11 Part 2 2-a. In transaction (b), what single sum amount must the company deposit on January 1 of this year? (Round your answer to nearest whole dollar.) Amount to deposit 2-b. What is the total amount of interest revenue that will be earned? (Round your answer to nearest whole dollar.) Interest revenue 7 Required information Part 3 of 4 P9-11 (Algo) Computing Present Values LO9-7, 9-8 [The following information applies to the questions displayed below.) 5 points On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) eBook a. Promised to pay a fixed amount of $7,200 at the end of each year for seven years and a one-time payment of $117,400 at the end of the 7th year. b. Established a plant remodeling fund of $491,800 to be available at the end of Year 8. A single sum that will grow to $491,800 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $76,200 at the end of the first year, $113,700 at the end of the second year, and $151,200 at the end of the third year. d. Purchased a $176,000 machine on January 1 of this year for $35,200 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year. Print References P9-11 Part 3 3. In transaction (c), determine the present value of this obligation. (Round your answer to nearest whole dollar.) Present value Chapter 9 Saved 00 ! Required information Part 4 of 4 P9-11 (Algo) Computing Present Values LO9-7, 9-8 [The following information applies to the questions displayed below.) 5 points On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) eBook a. Promised to pay a fixed amount of $7,200 at the end of each year for seven years and a one-time payment of $117,400 at the end of the 7th year. b. Established a plant remodeling fund of $491,800 to be available at the end of Year 8. A single sum that will grow to $491,800 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $76,200 at the end of the first year, $113,700 at the end of the second year, and $151,200 at the end of the third year. d. Purchased a $176,000 machine on January 1 of this year for $35,200 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year. Print References P9-11 Part 4 4-a. In transaction (d), what is the amount of each of the equal annual payments that will be paid on the note? (Round your answer to nearest whole dollar.) Annual payments 4-b. What is the total amount of interest expense that will be incurred? (Round your answer to nearest whole dollar.) Interest expense