1) To restructure some of its debt, General Motors made a decision to pay off one of its short-term loans. If company borrowed the money 1 year ago at interest rate of 12% per year and total cost of re-paying loan was $120 million, determine amount of original loan?
A. PV= $107,142,857.14
B. FV= $120,000,000.00
C. RATE= 12%
D. Nper= 1
2) Two years ago I purchased many boxes of flooring for $20 at the auction. I just sold them for $30. Determine effective annual rate of return did I make on my investment on basis of compound interest?
A. PV = $20.00
B. FV = $(30.00)
C. RATE = 22.474%
D. Nper = 2