In transaction, determine the present value of the debt. Please show your work.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
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