6. a) How long does it take at 5 % annual interest to double your money?

Answer:

b) A loan company states that its annual percentage rate is only 18% with interest paid weekly.

What is the company's effective annual rate?

Answer:

c) Your uncle has $250,000 invested at 7% and now he wants to retire. He wants to withdraw $35,000 at the end of each year, beginning at the end of this year. He also want to have $25,000 left to give you when he ceases to withdraw funds from the account. For how many years can he make the $35,000 withdraws and still have $25,000 left in the end?

Answer:

d) Helmuth Inc.s latest net income was $1,250,000, and it had 225,000 shares outstanding. The company want to pay out 36% of its income. What dividend per share should it declare?

Answer: