Required information P9-10 (Algo) Computing Present Values L09-7, 9-8 [The following information applies to the questions displayed below.] 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. a. Promised to pay a fixed amount of $6,700 at the end of each year for nine years and a one-time payment of $116,400 at the end of the 9 th year. b. Established a plant remodeling fund of $491,050 to be available at the end of Year 10. A single sum that will grow to $491,050 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $75,700 at the end of the first year, $113,200 at the end of the second year, and $150,700 at the end of the third year. d. Purchased a $173,500 machine on January 1 of this year for $34,700 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. P9-10 Part 2 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? 3. In transaction (c), determine the present value of this obligation. Note: Round your intermediate calculations and final answer to nearest whole dollar. 4-a. In transaction (d), what is the amount of each of the equal annual payments that will be paid on the note? 4-b. What is the total amount of interest expense that will be incurred? Required information P9-10 (Algo) Computing Present Values L09-7, 9-8 [The following information applies to the questions displayed below.] 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. a. Promised to pay a fixed amount of $6,700 at the end of each year for nine years and a one-time payment of $116,400 at the end of the 9 th year. b. Established a plant remodeling fund of $491,050 to be available at the end of Year 10. A single sum that will grow to $491,050 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $75,700 at the end of the first year, $113,200 at the end of the second year, and $150,700 at the end of the third year. d. Purchased a $173,500 machine on January 1 of this year for $34,700 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. P9-10 Part 2 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? 3. In transaction (c), determine the present value of this obligation. Note: Round your intermediate calculations and final answer to nearest whole dollar. 4-a. In transaction (d), what is the amount of each of the equal annual payments that will be paid on the note? 4-b. What is the total amount of interest expense that will be incurred