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Baker Company has entered into a lease agreement for a machine which can be purchased for $137,183. Baker Company has chosen to lease the machine
Baker Company has entered into a lease agreement for a machine which can be purchased for $137,183. Baker Company has chosen to lease the machine for $25,000 per year on a 9-year lease. Payments are due at the start of each year. Calculate the implied interest rate for the lease payments.
a. | 10% |
b. | 11% |
c. | 12% |
d. | 15% |
e. | 18% |
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