1. The house you want to buy costs $328 thousand. You plan to make a cash down payment of 10 percent, and borrow the rest in a 30 year mortgage at 4.2 percent APR. What will be the amount of your monthly mortgage payment?
2. A stock pays expected dividents of $10 a the end of each year indefinitely. The current stock price is $200. Determine the investors required yield.
3. A stock is expected to pay quarterly dividends of $0.50 at the end of each quarter. Five years from now, the investor is expected to sell the stock for $15. The investors annual effectivve return is 15%. Determine the current price of the stock.