"Beef" Johnston will loan Phil Mickelson $5000 to pay a recent golf fine. The loan agreement has interest compounding only once (quarterly). Johnston will give Mickelson $5000 today and Mickelson will then pay $5500 to Johnston in 3 months. The two golfers think that the interest rate might be 10.00% ($500 on a $5000 loan). Calculate the EAR that truly underlies this transaction.

Aproduction line has three machines a, b, and c, with reliabilities of .96, .86, and .85, respectively. the machines are arranged so that if one breaks down, the others must shut down. engineers are weighing two alternative designs for increasing the line’s reliability. plan 1 involves adding an identical backup line, and plan 2 involves providing a backup for each machine. in either case, three machines (a, b, and c) would be used with reliabilities equal to the original three. a. compute overall system reliability under plan 1. (round your intermediate calculations and final answer to 4 decimal places.) reliability b. compute overall system reliability under plan 2. (round your intermediate calculations and final answer to 4 decimal places.) reliability c. which plan will provide the higher reliability? plan2plan1