1. AIA Inc. is looking to manage its cash position using the EOQ model. The company is consuming cash at the rate of $6000 per day, and is open for business 365 days in the year. Each time the firm sells securities to obtain the cash, it costs them $180. The interest rate is 2.30%. What are the total costs (annual storage costs + annual order costs) associated with the EOQ?

2. Triumph Corporation extends credit to many of its customers, and sets the term of these credits at: 1.25/9; net/34 Jones is a customer of Triumph and has received the above credit on a recent purchase of $100,000. Jones is trying decide whether to take Triumph up on its offer to pay early or instead to wait until the last possible day to pay the amount in full. Help Jones out by computing the annual interest rate implied by these credit terms. __ % **Place your answer as a percentage without any percent sign. That is, if you think the answer is twenty five point five percent, then place your answer as 25.5