What is the quarterly expected return for investment

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You own two investments, A and B, that have a combined total value of 35,947 dollars. Investment A is expected to make its next payment in 1 month. A’s next payment is expected to be 224 dollars and subsequent payments are expected to grow by 0.47 percent per month forever. The expected return for investment A is 1.3 percent per month. Investment B is expected to pay 241 dollars each quarter forever and the next payment is expected in 3 months. What is the quarterly expected return for investment B? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Reference no: EM131963506

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