Question
1. As of the date of Colony Farms most recent financial statements, 3.5 years remained in the term of a lease reported as a long-term
1. As of the date of Colony Farms most recent financial statements, 3.5 years remained in the term of a lease reported as a long-term liability of $27,400. If the beginning-of-month lease payments are $750, what monthly compounded nominal discount rate was used in valuing the lease? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
2. The membership dues at Shoreline Golf and Country Club are $2820 payable at the beginning of the year, or four payments of $736.56 payable at the beginning of each quarter. What effective rate of interest is the club charging members who pay their dues quarterly? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
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