1. You borrow a $328,000 add-on interest loan from the credit union and will repay in equal installments over 19 years. The nominal rate of interest is 4.5 %. Assuming daily repayment and compounding rate of interest, obtain the annual percentage rate.
a. 9.88%
b. 10.38%
c. 10.88%
d. 11.38%
2. A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. What might investors expect to pay for the stock one year from now?
A) $82.20
B) $86.20
C) $87.20
D) $91.20