1. A worker wants to have $1,000,000 by the time he retires. The worker puts $10,000 into a savings account at the end of every year that earns 5% compounded annually. How many years of working will it take until the worker can retire?
2. What is the general rule of thumb about when to borrow long-term or short-term? Compare and contrast the advantages and disadvantages of short and long-term borrowing to meet working capital needs.