On January 1, 2006, Vigeland. Company completes the following transactions ( assume a 10 % annual interest rate):

a. Bought a delivery truck and agreed to pay $30,000 at the end of the year. What is the cost of the truck that should be recorded at the time of purchase?

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. Decises 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%.

1. Years 1 and 2 - $1,000. per year;

2. Years 3 to 6- $2,000 per year;

3. Years 7 to 10- $2,500 per year;

-What is the present value of the lease?