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On January 1 o this year, Shannon Company completed the following transactions assume a 9% annual interest rate provided.) FV of $1. P o $1
On January 1 o this year, Shannon Company completed the following transactions assume a 9% annual interest rate provided.) FV of $1. P o $1 FVA of S1 and P A of $1 (Use the appropriate factors from the tables 1. Bought a delivery truck and agreed to pay $61,300 at the end of three years. 2. Rented an office building and was given the option of paying $11,300 at the end of each of the next three years or paying $29,300 immediately. 3. Established a savings account by deposlting a single amount that will Increase to $92,600 at the end of seven years. 4. Decided to deposit a singe sum in the bank that will provide 9 equal annual year-end payments of $41,300 to a retired employee (payments starting December 31 of this year). Required: 1. What is the cost of the truck that should be recorded at the time of purchase? (Round your answer to nearest whole dollar.) t of the truck 2. Which option for the office building resuits in the lowest present value? Pay in three installments Pay in single installment 3. What single amount must be deposited in this account on January 1 of this year? (Round your answer to nearest whole dollar.) t to 4. What single sum must be deposited in the bank on January 1 of this year? (Round your answer to nearest whole dollar.) t to deposit
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