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Calculate the original price of the machine

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Problem 1: James invested $225,000 to purchase a home. After 10 years, she sold the home for $280,000. Calculate the effective interest rate earned on this investment. (Round to the nearest cent)

Problem 2: Find the equivalent interest rate for the given nominal interest rate.(Round to the nearest cent)
a. Nominal interest rate compounded quarterly that is equivalent to an effective interest rate of 5.25%.
b. Nominal interest rate compounded monthly that is equivalent to 4.5% compounded quarterly.
c. Nominal interest rate compounded semi-annually that is equivalent to 4.5% compounded annually.

Problem 3: After a discount of 35%, a publishing company purchased an offset printing press for $50,000. Calculate the original price of the machine.(Round to the nearest cent)

Reference no: EM132838367

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