Required informationRequired 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)($Use the appropriate factor$($s$)$ from the tables provided.$)$

a$.$ Promised to pay a fixed amount of $$6,700$ at the end of each year for nine years and a one$-$time payment of

$$116,400$ at the end of the $9$ th year.

b$.$ Established a plant remodeling fund of $$491,050$ to be available at the end of Year $10.$ A single sum that will grow to

$$491,050$ will be deposited on January $1$ of this year.

c$.$ Agreed to pay a severance package to a discharged employee. The company will pay $$75,700$ at the end of the first

year, $$113,200$ at the end of the second year, and $$150,700$ at the end of the third year.

d$.$ Purchased a $$173,500$ machine on January $1$ of this year for $$34,700$ 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.

$2-$a$.$ In transaction $($b$),$ what single sum amount must the company deposit on January $1$ of this year? $($Round your answer to nearest

whole dollar.$)$

Amount to deposit $$,207,523$

$2-$b$.$ What is the total amount of interest revenue that will be earned? $($Round your answer to nearest whole dollar.$)$

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

a$.$ Promised to pay a fixed amount of $$6,700$ at the end of each year for nine years and a one$-$time payment of

$$116,400$ at the end of the $9$ th year.

b$.$ Established a plant remodeling fund of $$491,050$ to be available at the end of Year $10.$ A single sum that will grow to

$$491,050$ will be deposited on January $1$ of this year.

c$.$ Agreed to pay a severance package to a discharged employee. The company will pay $$75,700$ at the end of the first

year, $$113,200$ at the end of the second year, and $$150,700$ at the end of the third year.

d$.$ Purchased a $$173,500$ machine on January $1$ of this year for $$34,700$ 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.

Required:

In transaction $($a$),$ determine the present value of the debt. $($Round your answer to nearest whole dollar.$)$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)($Use the appropriate factor$($s$)$ from the tables provided.$)$

a$.$ Promised to pay a fixed amount of $$6,700$ at the end of each year for nine years and a one$-$time payment of

$$116,400$ at the end of the $9$ th year.

b$.$ Established a plant remodeling fund of $$491,050$ to be available at the end of Year $10.$ A single sum that will grow to

$$491,050$ will be deposited on January $1$ of this year.

c$.$ Agreed to pay a severance package to a discharged employee. The company will pay $$75,700$ at the end of the first

year, $$113,200$ at the end of the second year, and $$150,700$ at the end of the third year.

d$.$ Purchased a $$173,500$ machine on January $1$ of this year for $$34,700$ 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.

Required:

In transaction $($a$),$ determine the present value of the debt. $($Round your answer to nearest whole dollar.$)$