1. How much will you have to deposit annually at a 6% interest rate to accumulate $500,000.00 prior to your retirement in 30 years?
$23.76
$632.45
$6,324.46
$7,906.45
2. A common stock paid a dividend of $3.75 this year. It is expected to grow at 8% each year for the foreseeable future. Investors require an 11% return rate. What is the value of a share of this stock?
$135.00
$125.00
$22.50
$3.97