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.)

Borrowed $115,600 for nine years. Will pay $6,300 interest at the end of each year and repay the $115,600 at the end of the 9th year.

Established a plant remodeling fund of $490,450 to be available at the end of Year 10. A single sum that will grow to $490,450 will be deposited on January 1 of this year.

Agreed to pay a severance package to a discharged employee. The company will pay $75,300 at the end of the first year, $112,800 at the end of the second year, and $150,300 at the end of the third year.

Purchased a $171,500 machine on January 1 of this year for $34,300 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:?

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 deposit: ?

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

nterest Value:?

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

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?

nterest Expense:?