1. Billy owns one share of Disney stock. He purchased the share 3 years ago for $15. Disney stock is currently trading for $27 per share. The stock has paid the following dividends over the past three years: year 1, $1.00; year 2, $2.00; year 3, $3.00. What is the compounded rate of return (IRR) that Billy has earned on his investment?
A. 9.1%.
B. 19.1%.
C. 29.1%.
D. 31.8%.
2. Tony saved enough money to place $125,500 in an investment generating 9.25% compounded monthly. He wants to collect a monthly income of $1,350, at the beginning of each month, for as long as the money lasts. How many months will Tony have this income coming to him?
A. 165.
B. 145.
C. 192.
D. 162.