Farmers bank offers to lend you $50,000 at a nominal rate of 5.0%, simple interest, with interest paid quarterly. merchants bank offers to lend you the $50,000, but it will charge 6.8%, simple interest, with interest paid at the end of the year. what's the difference in the effective annual rates charged by the two banks?

Rebel technology maintains its records using cash-basis accounting. during the year, the company received cash from customers, $43,000, and paid cash for salaries, $23,500. at the beginning of the year, customers owe rebel $1,000. by the end of the year, customers owe $6,600. at the beginning of the year, rebel owes salaries of $5,600. at the end of the year, rebel owes salaries of $3,300. determine cash-basis net income and accrual-basis net income for the year.