Lease A-Lease A covers office equipment that can be purchased for $143,534. Flint Company has, however, chosen to lease the equipment for $34,500 per year, payable at the end of each of the next 7 years. Calculate the implied interest rate for the lease payments. (Round factor values to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places, eg.5%)
Lease A-Lease A covers office equipment that can be purchased for $143,534. Flint Company has, however, chosen to lease the equipment for $34,500 per year, payable at the end of each of the next 7 years. Calculate the implied interest rate for the lease payments. (Round factor values to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places, eg.5%)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lease A-Lease A covers office equipment that can be purchased for $143,534. Flint Company has, however, chosen to lease the
equipment for $34,500 per year, payable at the end of each of the next 7 years.
Calculate the implied interest rate for the lease payments. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0
decimal places, e.g.5%.)
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