In 1958, Bear Bryant was the highest-paid college football coach, with a salary of $142,998. In 2007, Nick Saban was the highest-paid coach, with a salary of $4 million. What was each coach paid in base period dollars? (The CPI in 1958 was 28.9 and the CPI in 2007 was 207.3.)

a. Bryant's salary was $494,803, Saban's was $1.930 million

b. Bryant's salary was $1.025 million, Saban's was $557,880

c. Bryant's salary was $41,326, Saban's was $829,200

d. Bryant's salary was $49,480, Saban's was $193,236

Selling the bonds at a premium has the effect of

raising the effective interest rate above the stated interest rate

causing the interest expense to be higher than the bond interest paid

attracting investors that are willing to pay a lower rate of interest than on similar bonds

causing the interest expense to be lower than the bond interest paid

Multiple Cholce Question

A company can repay outstanding principal and interest when\(\qquad \)

there is a cash deficiency the cash excess equals

the minimum required cash balance

the cash excess is less than the minimum required cash balance

the cash excess is greater than the minimum required cash balance

Select the correct answer. Which scenario reflects an annual inflation rate of\(3 \% \)?

A. In year 1, the price of a computer is\(325.00\). In year 2, the same computer costs\(328.00\).

B. In year 1, the price of a soda is\(0.75\). In year 2, the same soda costs\(0.78\).

C. In year 1, the price of a board game is\(10.00\). In year 2, the same board game costs\(10.03\).

D. In year 1, the price of a sofa is\(500.00\). In year 2, the same sofa costs\(515.00\)

At the Penalty APR rate of 28.99% and a balance of about $1800, approximately how much interest would you owe in one month? (Hint: remember that 28.999% is the annual percentage rate; therefore, you need to divide it by 12. For example, (28.99%/12) *balance)

$40

$100

$60

$30