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What is the interest rate used in discounting

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Problem 1: Teal Mountain Inc. has completed the purchase of new Surface computers. The fair value of the equipment is $442,625. The purchase agreement specifies an immediate down payment of $100,000 and semiannual payments of $48,809 beginning at the end of 6 months for 4 years. What is the interest rate, to the nearest percent, used in discounting this purchase transaction?

Reference no: EM132832340

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