Suppose you were told that you would earn $95,000 per year by the time you were 30. Explain why this information would say little about the standard of living you might enjoy. What other information would you need before you could evaluate how well you could live when you are 30?

Carey company is borrowing $225,000 for one year at 9.5 percent from second intrastate bank. the bank requires a 15 percent compensating balance. the principal refers to funds the firm can effectively utilize (amount borrowed − compensating balance). a. what is the effective rate of interest? (use a 360-day year. input your answer as a percent rounded to 2 decimal places.) b. what would the effective rate be if carey were required to make 12 equal monthly payments to retire the loan?