1. Joey realizes that he has charged too much on his credit card and has racked up $4,700 in debt. If he can pay $150 each month and the card charges 12 percent APR (compounded monthly), how long will it take him to pay off the debt?
2. You wish to buy a $27,500 car. The dealer offers you a 6-year loan with a 7.2 percent APR. What are the monthly payments?
How would the payment differ if you paid interest only?
3. Describe corporate governance, social responsibility, and the agency problem of Amazon.com. And lay out the policy for each one.