1. ABC has taken out an add-on interest loan for $100,000 at an annual rate of 4.9% for 4 years. The loan requires quarterly payments. What is the equivalent simple interest loan rate for this transaction?
8.05%
8.28%
8.52%
8.75%
2. Which of the following is true concerning break-even analysis?
A. As variable costs increase, the volume needed to break-even goes down.
B. As fixed costs decrease, the volume needed to break-even goes up.
C. Sales price has no impact on break-even volume.
D. At break-even volume, total costs = total revenues.