part a    You are expecting a tax refund of $5,000 in 10 weeks

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part a

   You are expecting a tax refund of $5,000 in 10 weeks. A tax preparer offers you an "interest-free" loan of $5,000 for a fee of $50 to be repaid by your refund check when it arrives in 10 weeks. Thinking of the fee as interest, what weekly simple interest rate would you be paying on this loan?

 

weekly simple interest rate ? %

annual simple interest rate ? % 

 

part b

   Meg's pension plan is an annuity with a guaranteed return of 7% per year (compounded quarterly). She would like to retire with a pension of $50,000 per quarter for 10 years. If she works 30 years before retiring, how much money must she and her employer deposit each quarter? (Round your answer to the nearest cent.)

 

$ ?