1. Gary loves shopping for electronic gadgets and he has decided to start saving. At the end of each year, he will deposit $2,000 in his local bank, which pays an annual interest of 6%. How much will he save by end of eight years?
2. Class, How would the use of credit cards affect a firm’s cash conversion cycle assuming it previously allowed customers 30 days to pay for their purchases?
3. A corporate treasurer is lookng to invest about $4 Million for 60 days. Commercial paper rates are 3.55 percent discount and CD rates are 3.56 percent. Comparing the bond equivalent yields over a 365-day year, which is the best alternative? Round the percentage result to two decimals.