1. Your investment account pays 8.4%, compounded annually. If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20?
a. 8.68
b. 5.08
c. 6.28
d. 7.48
e. 3.88
2. Kelly Enterprises' stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 5.00% per year. The required rate of return on the stock, rs, is 11.50%. What is the stock's expected price 5 years from now?
a. $36.36
b. $38.96
c. $38.31
d. $37.66
e. $37.01
3. Suppose you are buying your first home for $160,000, and you have $15,000 for your down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be?
a. $898.20
b. $904.30
c. $922.60
d. $916.50
e. $910.40