1. It cost $10,000 to train a new employee. You need to determine an equivalent cost...
1. It cost $10,000 to train a new employee. You need to determine an equivalent cost of training. For a group of employees who will serve 6 years, define this as the amount that could be paid at the end of each year of six (6) and equivalent to a 10% compound interest of $10,000 at the end of the first year. This amount is most nearly to:
| a. |
A = $2,500 |
|
| b. |
A = $2,296 |
|
| c. |
A = $2,196 |
|
| d. |
A = $3,296 |
2. An individual contributes $300 per month to a retirement account. The account earns interest at a nominal annual interest rate of 6%, with interest being credited monthly. What is the value of the account after 10 years?
| a. |
$47,325 |
|
| b. |
$49,164 |
|
| c. |
$44,567 |
|
| d. |
$68,976 |
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