Reference no: EM132493617

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.)

a. Promised to pay a fixed amount of $6,200 at the end of each year for six years and a one-time payment of $115,400 at the end ofthe 6th year.

b. Established a plant remodeling fund of $490,300 to be available at the end of Year 7. A single sum that will grow to $490,300 will be deposited on January 1 of this year.

c. Agreed to pay a severance package to a discharged employee. The company will pay $75,200 at the end of 4 the first year, $112,700 at the end of the second year, and $150,200 at the end of the third year.

d. Purchased a $171,000 machine on January1 of this year for $34,200 cash. A five-year note is signed for the balance. The note will be paid in ?ve equal year-end payments starting on December 31 of this year.

Question 1: What is the amount of each of the equal annual payments that will be paid on the note? (Round your answer to nearest whole dollar.)

Question 2: What is the total amount of interest expense that will be incurred? (Round your answer to nearest whole dollar.