1. Ryan invest $500 into a bank account at the beginning of each year for 25 years. The account pays out interest at the end of every year at an annual effective interest rate of 6%. The interest is reinvested at an annual rate of 4%. Determine the annual effective yield rate on the entire investment over the 25-year period.
A) 5.0%
B) 5.3%
C) 5.6%
D) 5.9%
E) 6.2%
2. ______ is a measure of operating leverage. It is the different between a company's total sales revenue and variable costs.
a. Contribution margin analysis
b. incremental analysis
c. margin of safety analysis
d. regression analysis