What effective rate of interest

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Question 1 - Rentown advertised a television at a cash price of $599.99 and at a rent-to-own rate of $14.79 at the beginning of each week for 78 weeks. What effective rate of interest, to the nearest 0.01%, is a customer paying to acquire the television in a rent-to-own transaction?

Question 2 - Interprovincial Distributors Ltd. is planning to open a distribution centre in Calgary in five years. It can purchase a suitable piece of land for the distribution warehouse now for $450,000. Annual taxes on the vacant land, payable at the end of each year, would be close to $9000. To the nearest dollar, what price would the property have to exceed five years from now to make it financially advantageous to purchase the property now instead of five years from now? Assume that Interprovincial can otherwise earn 12% compounded semiannually on its capital.

Reference no: EM132923005

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