1. BridgeportCompany purchased a machine at a price of $92,800by signing a note payable, which requires a single payment of $123,517in3years. Assuming annual compounding of interest, what rate of interest is being paid on the loan?(Round answer to 0 decimal places, e.g. 13%.)
2. Assume thatSonic Foundry Corporationhas a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $2,072,000, or it can make annual payments of $283,200for 15 years. Payments must begin now and be made on the first day of each of the 15 years, what payment method would you recommend assuming an expected effective-interest rate of11% during the future period?(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) What is the present value of annual payment. (tip: Recommended payment method is immediate payment )