Annually with monthly compounding

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1. Graham plans to save $100 each month for the next 20 years so he can purchase a boat. If he earns 10% interest annually with monthly compounding, how much money will he have at the end of 20 years if he starts saving today?

2. Cran Inc. will pay a $1 dividend next quarter. The dividend is expected to grow at a constant 1% per quarter. How much are you willing to pay for the stock if the required return is 16% annually with quarterly compounding?

Reference no: EM132068604

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