Calculate your compounded annual rate of return and discover

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Reference no: EM131526708

1. You invested $1,000 five years ago, but the economy has not done well. You calculate your compounded annual rate of return and discover that is was - 5% over this period of time. What is the value of your investment today?

A) $773.78

B) $950

C) $1,050

D) $1,276

2. You are interested in purchasing shares of preferred stock in your favorite beverage company. The stock is paying a constant dividend of $10 per year. How much should you pay per share if k is 8%?

A) $62.50

B) $125.00

C) $1.25

D) Impossible to determine

3. What a deal! Your new car only costs $28,300 after rebates and trade. If you finance it for 60 months at 6% annual interest, what will be your monthly payment?

A. $471.67

B. $544.40

C. $547.12

D. $1,751.08

Reference no: EM131526708

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