1. What is the expected dividend per share for the next 5 years if the current dividend is $2.50 per share and the expected growth rate is 5%?
2. Bill has just received an inheritance of $250,000, which he will invest at 6%, compounded monthly. If he withdraws $3000 at the end of each month, how long will it be until the inheritance is gone?
3. Gene wants to accumulate $30,000 for the down payment on a home in 3 years. If he invests $12,000 today, how much interest will he need to earn on an annual compounded basis?
4. Kelly and Mortimer are planning to retire today. They would like to receive $30,000 per year, at the beginning of each year for the next 25 years. They expect their investments to earn 8% per year and inflation to be 2% each year. How much must they have today to meet their goal?