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P$9-10($Algo$)$ Computing Present Values L$09-7,9-8$

$[$The following information applies to the questions displayed below.$]$

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)$

Note: Use appropriate factor$($s$)$ from the tables provided.

a$.$ Promised to pay a fixed amount of $$6,100$ at the end of each year for eight years and a one$-$time payment of $$115,200$ at the end of the $8$ th year.

b$.$ Established a plant remodeling fund of $$490,150$ to be available at the end of Year $9.$ A single sum that will grow to $$490,150$ will be deposited on January $1$ of this year.

c$.$ Agreed to pay a severance package to a discharged employee. The company will pay $$75,100$ at the end of the first year, $$112,600$ at the end of the second year, and $$150,100$ at the end of the third year.

d$.$ Purchased a $$170,500$ machine on January $1$ of this year for $$34,100$ 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.

P$9-10$ Part $3$

$3.$ In transaction $($c$),$ determine the present value of this obligation.

Note: Round your intermediate calculations and final answer to nearest whole dollar.