1. Mr. Hugh Warner is a very cautious businessman. His supplier offers trade credit terms of 2/13, net 75. Mr. Warner never takes the discount offered, but he pays his suppliers in 65 days rather than the 75 days allowed so he is sure the payments are never late. What is Mr. Warner's cost of not taking the cash discount?
2. Determine the amount of money in a savings account at the end of 10 years, given an initial deposit of $10,000 and an annual interest rate of 16 percent when interest is compounded: Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods Future value a. Annually b. Semiannually c. Quarterly