1. A payday loan company charges 4 percent interest for a 2 week period. What would be the annual interest rate from the company?

2. With a 28 percent marginal tax rate, would a tax-free yield of 7 percent or a taxable yield of 9.5 percent give you a better return on your saving? Why?

3 .Based on the following information, determine the true balance in your checking account.

Balance in your checkbook, $356

Balance on bank statement, $472

Service charge and other fees, $15

Interest earned on the account, $4

Total of outstanding checks, $187

Deposits in transit, $60

Problem 4

Life SituationFinancial Data

SingleMonthly Income$1,750

Age 21Living Expenses $1,210

No dependentsPersonal property$7,300

College StudentSavings $1,000

Student loan $3,000

Credit card debit$2,400

Shelby Johnson has been working at a local pet store, trying to save money so that she can open up her own business some day. She is nearing graduation: however, she recently lost some of her savings due to an unexpected illness and medical expenses. She knows that this may affect when she will be able to open her Pet Salon. She and her parents, Matt and Madison Johnson (ages 49 and 47), are close and Shelby frequently seeks out their financial advice. They warn her dad so that she can avoid having to dip into her savings in case something happens in the future.

a.Given her current situation, list some suggestions on what Shelby should do to increase her emergency fund.

b. Based n her current and future life situations, what other money management and financial planning activities would you recommend for Shelby?