Discounting the purchase transaction


Derek Lee Inc. has completed the purchase of new Dell computers. The fair market value of the equipment is $824,150. The purchase agreement specifies an immediate down payment of $200,000 and semiannual payments of $76,952 beginning at the end of 6 months for 5 years. What is the interest rate, to the nearest percent, used in discounting this purchase transaction?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Discounting the purchase transaction
Reference No:- TGS077677

Expected delivery within 24 Hours