Bill bulge owned a grocery store in missouri. In order to finance some inventory, he borrowed $3000 from big bucks bank. The written agreement called for 20% interest to be paid at a time when long term government bond yields were 12%. At maturity, bill refused to pay anything because he said the bank was guilty of usury. Will bill have to pay anything?

Retirement investment advisors, inc., has just offered you an annual interest rate of 4.4 percent until you retire in 40 years. you believe that interest rates will increase over the next year and you would be offered 5 percent per year one year from today. if you plan to deposit $13,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?