1. A 5-year loan is to be repaid by month-end repayments of 8,000 starting in one month at an interest rate of 5.5% p.a. compounded monthly. Or, it can be repaid by year-end repayments of $X staring in one year. Calculate the yearly repayments $X. Correct your answer to the nearest cent without any units. (Do not use "$" or "," in your answer. e.g. 12345.67)

2. A trust fund pays $42,000 each year-end in perpetuity. If the trust earns 7.8% per annum, compounding annually, the value of the trust fund today is closest to (to the nearest whole dollar; dont use the $ sign or comma separators)

3.

Your parents established a trust fund on 1 July 2016 which is designed to pay you $12,000 each year commencing 1 July 2024. If the effective annual interest rate is 6.0%, the amount your parents contributed to the fund on 1 July, 2016 is:

a.

$200000

b.

$318770

c.

$125482

d.

$133011

4.

A share may be valued based on the discounted value of the cash flow that the shareholder receives as dividends, in perpetuity.

Suppose a share is expected to pay you a dividend of $7.86 one year from now. Thereafter, the dividend will grow at 2.6% per annum, in perpetuity. If the relevant discount rate is 5.3% p.a. (effective), the shares value today is (to the nearest cent; dont include $ sign or commas):