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.