1. You have just joined the investment banking firm of Mckenzie & Co. They have offered you two different salary arrangements. You can have $75,000 per year for the next two years, or you can have $55,000 per year for the next two years, along with a $30,000 signing bonus today. If the interest rate is 12% compounded monthly, which is a better offer?
2. Seven years ago, Stan purchased 10 shares of an aggressive growth mutual fund at $90 per share, for a total of $950. Today he sold all 10 shares for $4,500. What was his average annual rate of return on this investment, before tax?