5 of 7 15. A loan of $ 200,000 is repaid using the sinking fund method with payments at the end of each month for 30 years. The nominal annual rate of interest convertible monthly is 6%. If the service payment is set at $899.10/month, what is the required sinking fund payment given that the sinking fund earns interest at an effective rate of % per month? A. $ 200.00 B. $ 300.00 C. $ 899.10 D. $ 999.10 E. $ 1,000.00 16. Given that a bondholder receives $ 1,000 at maturity in 3 years, what is the present value of the redemption if the real rate of interest is 4% compounded annually and the inflation rate is 3% compounded annually? A. $ 813.56 B. $ 884.74 C. $ 889.00 D. $933.53 E. $971.43 17. Donald buys 100 shares of stock at $1.00/share and sells the stock 6 years later for $2.00/share. If Donald received dividends of 12 cents/share at the end of each year for all 6 years, which of the following is closest to Donald's total annual rate of return? A. 19.50% B. 20.75% C. 21.66% D. 24.00% E. 24.25%