Question

E $1.236.073 20. You are preparing to make monthly payments of $100, starting from the end of this month. into an account that pars 8 percent APR. How many payments will you have made when your account balance reaches 59.312 A. 73 B. 90 C. 119 D. 124 E. 131 17. DEX Inc. just distributed $1.5 dividend. The expected dividend growth will be 5 per year for 10 years. The growth rate will then change after the initial 10 years. The current stock price is $10 and the required return is 10%. What is the implied growth rate after the initial 10 years? A 1.647 B. 8.45% C. 13.55% D. 6.627 E. 6.45% 18. First Century Bank wants to earn an effective annual return on its con- sumer loans of 10 percent per year. The bank uses daily compounding on its loans. APR is required to be reported by law. What rate should the bank report? A. 9.23 percent B. 9.53 percent C. 9.64 percent D. 9.72 percent

Answer 1

16) pmt Pmt $ 100.00 0.0067 Nper Rate 0.08/12 payment Number of periods Present value Face value Yield to maturity $(9,312.00) Rate Nper NPER(rate,pmt,pv, fv) NPER(0.0067,100,0,-9312) 73|Paymnets Answer:A