1. Martin is offered an investment where for $6,000 today, he will receive $6,240 in one year. He decides to borrow $6,000 from the bank to make this investment. What is the maximum interest rate the bank needs to offer on the loan if Martin is at least to break even on this? investment?
2. A delivery service is buying 600 tires for its fleet of vehicles. One supplier offers to supply the tires for $85 per? tire, payable in one year. Another supplier will supply the tires for $20,000 down? today, then $ 50 per? tire, payable in one year. What is the difference in PV between the first and the second? offer, assuming interest rates are 8.4?%?