Problem
1. If a piece of machinery depreciates continuously at an annual rate of 4%, how many years will it take for the value of the machinery to halve?
2. A department store has its own credit card facilities, for which it charges interest at a rate of 2% each month. Explain briefly why this is not the same as an annual rate of 24%. What is the annual percentage rate?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.