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Required information

$[$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 $$7,500$ at the end of each year for nine years and a one$-$time payment of

$$118,000$ at the end of the $9$ th year.

b$.$ Established a plant remodeling fund of $$492,250$ to be available at the end of Year $10.$ A single sum that will grow to

$$492,250$ will be deposited on January $1$ of this year.

c$.$ Agreed to pay a severance package to a discharged employee. The company will pay $$76,500$ at the end of the first

year, $$114,000$ at the end of the second year, and $$151,500$ at the end of the third year.

d$.$ Purchased a $$177,500$ machine on January $1$ of this year for $$35,500$ 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.

$4-$a$.$ In transaction $($d$),$ what is the amount of each of the equal annual payments that will be paid on the note?

$4-$b$.$ What is the total amount of interest expense that will be incurred?

Complete this question by entering your answers in the tabs below.

Req $4$b

What is the total amount of interest expense that will be incurred?

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

Interest expense