Fin 3000 - version 4 Kids Toy Co. has had total returns over the past three years of What is your best guess about the next years expected return? A. 3.0% 7. 0%, 7%, 2% C. 2.3% D. 2.0% E none of the above 8. You borrow $20,000 to buy a car. You will have to repay this loan by making equal monthly payments for 6 years. The interest rate is 1% per month. How much is your monthly payment? A. $391 B. $427 C. $368 D. $411 E. none of the above 9. Consider a stock that was bought a year ago for $20. The stock has paid a $2 dividend at the end of the year and its end of the year price was $23. What was the capital gains yield on this stock for the last year? A 10% B. 15% C, 20% D. 5% E. none of the above 10. Consider the following information for the next year's return on stock A. Probability Return 0.6 10% 20% 0.4 What is the expected return? A, 5% B.2% . 8% D. 1096 E. none of the above Deryl is saving money for his retirement. Beginning one month from now, he will begin depositing a fixed amount into a retirement account that will earn 12% compounded monthly. He will make 360 such deposits. Then, one month after making his final deposit, he will start withdrawing $8,000 monthly for 25 years. The fund will continue to earn 12% companded mon hly How large should Deryl's monthly deposits be to achieve his retirement goal? A. $190 B. $214 C. $200 D. $217 E. none of the above 11