1. Thorpe Mfg., Inc., is currently operating at only 95 percent of fixed asset capacity. Current sales are $420,000. Suppose fixed assets are $360,000 and sales are projected to grow to $450,000. How much in new fixed assets is required to support this growth in sales?
2. What annual interest rate would you need to earn if you wanted a $600 per month contribution to grow to $47,500 in six years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
3. Payday loans are very short-term loans that charge very high interest rates. You can borrow $240 today and repay $300 in two weeks. What is the compounded annual rate implied by this 25 percent rate charged for only two weeks?
(Do not round intermediate calculations and round your final answer to the nearest whole percent.)
4. Payday loans are very short-term loans that charge very high interest rates. You can borrow $500 today and repay $610 in two weeks. What is the compounded annual rate implied by this 22 percent rate charged for only two weeks?
(Do not round intermediate calculations and round your final answer to 2 decimal places.)