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  3. on january 1, boston company completed the followi

On January 1, Boston Company completed the following transactions (use a 7% annual interest rate...

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Accounting

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.

Promised to pay a fixed amount of $7,900 at the end of each year for nine years and a one-time payment of $118,800 at the end of the 9th year.

Established a plant remodeling fund of $492,850 to be available at the end of Year 10. A single sum that will grow to $492,850 will be deposited on January 1 of this year.

Agreed to pay a severance package to a discharged employee. The company will pay $76,900 at the end of the first year, $114,400 at the end of the second year, and $151,900 at the end of the third year.

Purchased a $179,500 machine on January 1 of this year for $35,900 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?

2-b. What is the total amount of interest revenue that will be earned?

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