1. With a present value of $500,000, what is the size of monthly withdrawals that can be made at the end of each month for the next 20 years if money is worth 5.4% compounded monthly. At the end of 20 years the balance left in the account will be $0.
2. The common stock of Kangaroo Tours is selling for $67.13 a share and has a 14.6 percent rate of return. One-third of the return on this stock is derived from dividends and the other two-thirds is derived from capital gains. What is the amount of the next dividend?