What will be the size of each payment

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Reference no: EM131869198

1. A housewife buys dining set worth $42,000. She pays down payment of $14,600 and promise to settle the balance in three equal payments in 3, 6, and 9 months, respectively. If the interest charged at 9% compounded monthly, what will be the size of each payment?

2. Todd expects XYZ Company to pay dividends of $1.30 this year, $1.40 next year, $1.50 the year after that, and $1.60 at the end of the fourth year. He also expects the shares to be worth $85.87 at the end of the fourth year. If Todd's required rate of return is 13.9%, what is the most he should be willing to pay for a share of XYZ Company stock?

Reference no: EM131869198

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