1. You bought a stock one year ago for $49.66 per share and sold it today for $57.91 per share. It paid a $1.43 per share dividend today. What was your realized return?
2. Baby Claire was born today. Her parents estimate that $100,000 will be needed to pay for her college education, which will begin on her 18 th birthday. How much must be invested annually to reach this goal, assuming that the first investment will occur on Claire’s first birthday, and that the account will earn an interest rate of 8% (compounded annually)?