Schwartz Macdonald
07/26/2024 · Junior High School

2.2 Convert an interest rate of \( 10 \% \) pal compounded quarterly to an annual effective interest rate. A lawnower was traded in for 2.326 anter 10 years. The depreciation was caleulated at \( 9.2 \% \) p.a. on a straight-line basis. Determine the cost of the lawnmower 10 years ago.

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**Part A:** The effective annual interest rate is approximately **10.38%**. **Part B:** The original cost of the lawnmower 10 years ago was **\$29,075**.

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