A. You need a quick $500 to pay this month's cell phone bill. An Indianapolis "payday" loan company will lend you thatamount for one month, charging you a fee of "only" $50 (meaning you pay back $550 in one month). The fee will bedue on the day you pay off the loan. Recognizing that the fee is in reality the interest payment, what is the true Effective annualRate (EAR)onthis loan?

B. You have just seen an ad for season tickets to the 2022 and 2023 Colts games. The ad says these double-seasontickets can be purchased today for $6,000. Alternatively, they can be purchased on the installment plan, for amonthlypayment of$300,tobepaidatthebeginningofeachmonth for24months(thefirstpaymentisdueonthedayyoubuythetickets).WhatistheEffective AnnualRate(EAR)ontheinstallmentpurchase?

C. A baseball player is offered a 5-year, $50 million contract which pays him the following amounts at the end of eachyear:

Year 1:$6 million

Year 2:$8 million

Year 3:$10 million

Year 4:$12 million

Year5:$14million

Instead of accepting the contract, the player asks for a contract that has the team paying the same total amount, butpayments are equal ($10 million a year) and come at the beginning of each year for the 5 yearsinstead of the end of theyear (5 total payments). Assuming that the appropriate discount rate is 6% per year, what is the difference in the presentvalueof twooffers?