Question 1. A credit union offers a savings account with the interest rate of 6% compounded annually. If $100 is deposited, how long does it take to triple the money if no money is ever withdrawn from the account?
Question 2. Company X and Company Y have the same assets but different capital structures. Suppose Company X has no debt and Company Y has $1,000,000 debt with 8% interest. If the tax rate for the 2 companies is 30%, what is the amount of annual tax savings for Company Y compared to Company X?