As the corporate treasurer, you must have $65,000 to purchase a new machine two years from today. Your company investments have been yielding 10% annually, compounded quarterly. How much will you have to invest today to have $65,000 in two years?
A. $53,349
B. $54,719
C. $55,262
D. $56,543
Lou Lewis borrows $100,000 to be repaid over 10 years at 6 pecent. How much total interest will be paid over the life of this loan?
A. $35,868
B. $37,764
C. $39,742
D. $41,885
Mr. John Smith borrowed $200,000 at 7.50% annual interest to buy a house. He has taken a 15 year mortgage and will be making monthly amortization payments. How much will Mr. Smith's monthly payment be?
A. $1,202.65
B. $1,456.92
C. $1,678.09
D. $1,854.02
A share of common stock paid a dividend last year of $1.20 per share. The company expects future growth to occur at a constant rate of 5.00%. The required rate of return for this stock is 12.00%. What is the value of a share of this stock?
A. $10.00
B. $10.50
C. $17.14
D. $18.00