Keiths Trucking Company is replacing part of their fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1, 2018. The note agreement will require $6 million in annual payments starting on December 31, 2018 and continuing for a total of six years (final payment December 31, 2023). Kenworthy will charge Keiths Trucking the market interest rate of 8% compounded annually. (Round to the nearest dollar).

A). (2-1/2 pts) How much will Keiths Trucking record as a debit to their equipment account and as a credit to their notes payable account on January 1, 2018? $__________

B). (2-1/2 pts) What is the remaining obligation on January 1, 2019 after the first payment has been made? $__________

C). (2-1/2 pts) Kate's grandmother promises to give her $6,000 at the end of three years and $6,000 at the end of six years. How much is the money worth today if Kristen could earn 5% annual interest on the funds? (Round to the nearest dollar). $__________

D). (2-1/2 pts) Laura deposits $12,000 in the bank today. She will be earning 6% interest annually on her deposit. How much money will she have in the bank at the end of 10 years? (Round to the nearest dollar). $__________

E). (2-1/2 pts) If the market rate of interest is 8%, a rational person would just as soon receive $80,000 four years from now as what amount today (round to the nearest dollar)? $__________

F). (2-1/2 pts) On January 1, 2014, Rich Company acquired a truck that had a purchase price of $100,000. The seller agreed to allow Rich to pay for the truck over a three-year period at 12% interest with equal payments due at the end of each year. The amount of each annual payment the company must make is (round to the nearest dollar) $__________