35. A stock has a price (i.e., present value of all cash flows from the stock expected by investors) of $23.00 today. It is expected to pay a dividend of $1 per share next year, $1.10 per share in the following year, $1.20 in the subsequent 7 years (i.e., pay a dividend of $1.20 in years 3 through year 9 into the future), and then be sold for $15.00 in 9 years (where that $15 represents the present value of all dividends expected after 9 years). Compute the interest rate or expected return on this stock (i.e., iterate to find the r that sets the sum of the present value of the future expected cash flows equal to the $23 present value).

36. If you take out a 30-year $420,007 mortgage on your home that has an interest rate of 6.25%, compute how much principal you will be paying back in the first month.