1. If a security currently worth $12,800 will be worth $18, 807.40 five years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made?
2. Baked Potatoes has total annual sales of 846,000 units, a carrying cost per unit of $1.64 per year, and restocking costs of $31 per order. Each inventory item has an average cost of $2.39. What is the average dollar value of the firm’s inventory if it always orders the most economical quantity?
$7,008
$7,409
$6,218
$6,411
$6,758