What is the amount of each monthly repayment

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Problem 1: Cool Ltd's preference shares that pay a perpetual annual dividend of $2 per share. If the appropriate discount rate for this investment is 6%, what is the price of this share?

Problem 1: You wish to retire in 30 years and you have estimated that you will need an amount of $1,200,000 to have a comfortable retirement. You wish to make 30 equal annual payments into an account at the end of each year. If you can earn 9% on your savings, compounded annually, over the next 30 years, how much must they invest at the end of each year for the 30 years to have $1,200,000 by retirement?

Problem 3: You wish to lend $25,000 over 5 years to purchase a car. The loan must be repaid over 5 years (assuming equal repayments). The interest rate on the loan is 12% per annum, compounded monthly. What is the amount of each monthly repayment?

Reference no: EM132856721

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