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 $116,800 for eight years. Will pay $6,900 interest at the end of each year and repay the $116,800 at the end of the 8th year.
- Established a plant remodeling fund of $491,350 to be available at the end of Year 9. A single sum that will grow to $491,350 will be deposited on January 1 of this year.
- Agreed to pay a severance package to a discharged employee. The company will pay $75,900 at the end of the first year, $113,400 at the end of the second year, and $150,900 at the end of the third year.
- Purchased a $174,500 machine on January 1 of this year for $34,900 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.
In transaction (
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On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions):
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