1. At the beginning of each year for 16 years, $3,060 are deposited into Account A, earning an annual effective rate of 5.2% interest. At the end of each year, the interest earned is withdrawn and placed in Account B, earning an annual effective rate of 7.5% interest. Determine the combined accumulated amount in Accounts A and B at the end of 16 years.
2. A firm sells 60,000 units of their product. Each unit has a selling price of $55 and a variable cost of $25. The firm also has fixed costs of $800,000 and interest expense of $50,000.
What is the total Contribution Margin for this firm?