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The following information applies to the questions displayed belowJ $1. Pyo $1. FVAo and PVAof $1 On January 1, Boston Compeny completed the provided.) following
The following information applies to the questions displayed belowJ $1. Pyo $1. FVAo and PVAof $1 On January 1, Boston Compeny completed the provided.) following transactions (use a 7% annual interest rate for all transactions) A o l Use the appropriate factor(s) from the tables Borrowed $118,600 for six years. will l pay $7800 interest at the end of each year and repay the $118,600 at the end of the 6th yer a. b. Established a plant remodeling fund af $492,700 to be available at the end of Year 7. A single sum that will grow to S492,700 will be depasited on January 1 of this year c. Agreed to pay a severance package to a discharged employee. The company will pay $76,800 at the end of the first year, $114,300 at the end of the second year, and $151,800 at the end of the third year. d. Purchased a $179,000 machine on January 1 of this year for $35,800 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: 1. In transaction (a), determine the present value of the debt. (Round your answer to nearest whole dollar.) Present value 4-a. In transaction (d), what is the amount of each of the equal annual payments that will be paid on the note? Annual payments 4-b. What is the total amount of interest expense that will be incurred? Interest expense
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