Problem 1 Computing Present Values On January 1, 2014, Boston Company completed the following transactions (use a 7 percent annual interest rate for all transactions) a) Borrowed $115,000 for seven years. Will pay $6,000 interest at the end of each year and repay the $115,000 at the end pf the 7th year. Determine present value of debt. Boston Company determined that the company needs to replace some of its long term assets in 8 years. The company estimated that it will need $490,000 in 8 years. Boston wants to deposit a single sum to this FUND now so it would grow up to $490,000 in 8 years. b) How much money does it need to deposit this Fund today? What is the total amount of interest revenue that will be earned over the period of 8 years