Hello dear,

I need help with the following questions. I solved the first one, but not sure if it's correct.

1.James has just turned 35 years old, and he has decided it is time to plan seriously for his retirement.On each birthday, beginning in one year and ending when he turns 65, he will save $10,000 in an RRSP account.If the account earns 10% per year, how much will James have saved at age 65.

END mode

PV0

N30 (65-35)=30

I/Y10

PMT(10,000)

FVCPT--> 1,644,940

Am I doing correct, or it has to BGN Mode, and N-29?

2.Security analyst have forecasted the dividends of Hodges Enterprises for the next 3 years as: Dividend in the first year =$1.20, second year = $1.75, and third year = $2.20.The forecasted selling price in 3 years is $48.50.The rate of return for common stock with a risk level comparable to that of Hodges Enterprises is 14%.What is the value of Hodges common stock?

3.You want to endow an annual graduation party at your university.You want the event to be a memorable one, so you budget $30,000 per year forever for the party.If the university earns 8% per year on its investments, and if the first party is in one year's time,how much will you need to endow the party?

b.Before accepting the money the President of the student association has asked that you increase the donation to account for the effect of inflation on the cost of the party in future years.Although $30,000 is adequate for next year's party, the president estimates that the party's cost will rise by 4% per year thereafter.To satisfy the president's request, how much do you need to donate now?

4.Suppose you need to borrow $400,000 to buy a house.The bank of Montreal offersyou a 5 year term mortgage with a rate of 7.252% to be amortized over 25 years of monthly payments.What is your monthly payment.

5.

We grow is going public with a perpetuity that offers 150% of the $100 face.They will use an interest rate of 9% in the analysis.Managers anticipate that the recent slow-down in dot.com securities will be short-lived, so they think it might be less expensive to issue the security as a growing perpetuity with a constant annual growth of 4%.Are they right that issuing a growing perpetuity will be less expensive?What will happen if they issue the security as a 25-year growing annuity?