Question 1. A small company borrowed $100,000.00 for business expansion. The entire principle of $100,000 will be repaid in 2 years, but quarterly interest of $3300 must be paid every three months. What nominal annual interest rate is the company paying?
2. You are considering purchasing a dump truck. The truck will cost $45,000 and have an operating and maintenance cost that starts at $15,000 the first year and increases by $2,000 per year thereafter. Assume that the salvage value at the end of 5 years is $9,000 and interest rate is 12%. The equivalent annual cost of owning and operating the truck is most nearly: