1. Find the interest rates earned on each of the following. Round each answer to two decimal places.
a. You borrow $750 and promise to pay back $795 at the end of 1 year.
b. You lend $750 and the borrower promises to pay you $795 at the end of 1 year.
c. You borrow $95,000 and promise to pay back $199,961 at the end of 11 years.
d. You borrow $10,000 and promise to make payments of $2,504.60 at the end of each year for 5 years.
2. Gypsy Industries has created numerous organizational subsystems to help it stay responsive to its environment. While this flexibility has helped the company meet its customers' needs it has also created a need for _________ within the organization.
a. additional levels in the hierarchy
b. differentiation
c. centralized decision making
d. integrating mechanisms
e. additional employees