Question
1. A consumer takes out a loan with monthly payments of $500 for a period of four years with first payment made today. Assuming an
1. A consumer takes out a loan with monthly payments of $500 for a period of four years with first payment made today. Assuming an annual discount rate of 3.5%, compounded monthly, compute the present value of the loan. Show all your steps and computations work.
2. An investor purchases 100 shares of a stock. The history of this investment is outlined below:
Assuming that the investor does not reinvest his dividends, which are tax free, compute the time- weighted rate of return on this investment. Show all the steps and all your work
PLEASE ANSWER ALL PARTS
Time Activity buy 100 shares buy 20 shares Start of year 1 End of year 1 End of year 2 End of year 3 | Price per Dividend share per share $20 $22 2.00 $25 $2.500 $24 sell 120 sharesStep by Step Solution
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