Question: Current Attempt in Progress Metlock Company purchased a machine at a price of $109.500 by signing a note payable, which requires a single payment

Current Attempt in Progress Metlock Company purchased a machine at a price of $109.500 by signing a note payable, which requires a single payment

Current Attempt in Progress Metlock Company purchased a machine at a price of $109.500 by signing a note payable, which requires a single payment of $134,915 in 2 years (a) Your answer is correct. Assuming annual compounding of interest, what rate of interest is being paid on the loan? Use either a financial calculator or the Excel function Rate to calculate the rate. (Round answer to 0 decimal places, eg. 52%) Rate of interest 11 (b) What would be the purchase price of the machine had Metlock negotiated a single payment of $134,000 in 2 years, using the same effective rate? To calculate, use (1) a financial calculator or (2) Excel function PV. (Round answer to 2 decimal places, e.g 5,275.25.) Purchase price of the machine $

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