Question
1.ishbone Corporation purchased a special tractor on December 31, 2014. The purchase agreement stipulated that Fishbone should pay $22,680at the time of purchase and $5,360at
1.ishbone Corporation purchased a special tractor on December 31, 2014. The purchase agreement stipulated that Fishbone should pay $22,680at the time of purchase and $5,360at the end of each of the next12years. The tractor should be recorded on December 31, 2014, at what amount, assuming an appropriate interest rate of11%?(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
2.Dubois Inc. has completed the purchase of new Dell computers. The fair value of the equipment is $817,000. The purchase agreement specifies an immediate down payment of $238,800and semiannual payments of $67,783beginning at the end of6months for5years. What is the interest rate, to the nearest percent, used in discounting this purchase transaction?
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