On January 1, 2011, Boston Company completed the following transactions (use a 9 percent annual interest rate for all transactions a. Borrowed $103,000 for nine
years. Will pay $9,270 interest at the end of each year and repay the $103,000 at the end of the 9th year. b. Established a plant addition fund of $520,000 to be
available at the end of year 8. A single sum that will grow to $520,000 will be deposited on January 1, 2011. c. Agreed to pay a severance package to a discharged
employee. The company will pay $84,000 at the end of the first year, $122,500 at the end of the second year, and $146,000 at the end of the third year. d.
Purchased a $130,000 machine on January 1, 2011, and paid cash, $35,000. A eight-year note payable is signed for the balance. The note will be paid in eight equal
year-end payments starting on December 31, 2011. In transaction (a), determine the present value of the debt. (Round “PV Factors” to 4 decimal places. Round
intermediate calculations and final answer to the nearest whole dollar amount.) In transaction (c), determine the present value of this obligation. (Round “PV
Factors” to 4 decimal places. Round intermediate calculations and final answer to the nearest whole dollar amount). In transaction (b), what single sum amount must
the company deposit on January 1, 2011? (Round “PV Factors” to 4 decimal places and final answer to the nearest whole dollar amount.) What is the total amount of
interest revenue that will be earned? Use http://lectures.mhhe.com/connect/0078111021/Tables/presentvaluedecimal.jpg and
http://lectures.mhhe.com/connect/0078111021/Tables/pvannuitydecimal.jpg