1. The following table describe the characteristics of 5 annuities. Calculate the future value of each annuity given its characteristics.
deposit Annual Annuity payment Interest rate Annuity by length.
A $ 2,500 8 percent 10
B $ 500 12 percent 6
C $ 1,000 20 percent 5
D $ 12,000 16 percent 8
E $ 4,000 14 percent 30
2. Thorpe Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, soits costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 4% per year. If the most recent dividend, D0, was $3 and the required rate of return on the stocks, rs, is 11%, what is the value of Thorpe Mountain's stock?
A. $22.42 B. $19.20 C. $ 29.06 D. $14.53