Kingbird Company purchased a machine at a price of $103,300 by signing a note payable, which requires a single payment of $124,993 in 2 years.
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Assuming annual compounding of interest, what rate of interest is being paid on the loan? (Round answer to 0 decimal places, e.g. 52%.)
What would be the purchase price of the machine had Kingbird negotiated a single payment of $135,000 in 2 years, using the same effective rate? (Round answer to 2 decimal places, e.g. 5,275.25.)
