Present value of the debt

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Reference no: EM13913267

On January 1, 2011, Boston Company completed the following transactions (use a 7 percent annual interest rate for all transactions)

Borrowed $115,000 for seven years. Will pay $8,050 interest at the end of each year and repay the $115,000 at the end of the 7th year.

In transaction, determine the present value of the debt.

Please show your work.

Reference no: EM13913267

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