1. How many years will take $25,000 to grow to $120,000 if bank offered rate is 18%?

2. Suppose you save $4,000 per year at the end of each year for 3 years and earn 5% interest per year. How much will you have at the end of 3 years?

3. Suppose you save $4,000 per year at the end of each year for 10 years and earn 8.5% interest per year. How much will you have at the end of 10 years?

4. Suppose you save $1,000 per year at the beginning of each year for 3 years and earn 5% interest per year. What is the present value of this annuity?
5. Suppose you save $500 per year at the end of each year for 15 years and earn 8.25% interest per year. What is the present value of this annuity?

6. Suppose that the constant and perpetual cash flow is $1,000 and the discount rate is 8%. What is the value of this perpetuity?

7. Suppose that the constant and perpetual cash flow is $1,000 and the discount rate is 10%. What is the value of this perpetuity?

8. 5-year bond with a coupon rate of 4% has a face value of $1000. What is the annual interest payment?

9. 3-year bond with 10% coupon rate and $1000 face value yield to maturity is 8%. Assuming annual coupon payment, calculate the price of the bond.

10. 10-year bond with 12.5% coupon rate and $1000 face value yield to maturity is 14.5%.Assuming annual coupon payment, calculate the price of the bond.
11. four-year bond has an 8% coupon rate and a face value of $1000. If the current price of the bond is $878.31, calculate the yield to maturity of the bond (assuming annual interest payments).
12. A ten -year bond has an 10% coupon rate and a face value of $1000. If the current price of the bond is $1150, calculate the yield to maturity of the bond (assuming annual interest payments).
13. If current price of stock is $25 and you hold it for one year and received dividend of $2.5.You sold it at $27. How much return you received? Show dividend yield and capital gainseparately.
14. If investor required return is 20% and capital gain is 8% how much dividend company should pay?
15. Current price of stock is $20 and expected price after one year is 22.5. If investor required return is 18%. What percentage of dividend should company pay?
16. You own a stock that will start paying $0.50 annually at the end of the year. It has zero growth in future. If the required rate of return is 14%, what should you pay per share?
17. You own a stock that will start paying $0.50 annually at the end of the year. It will then grow each year at a constant annual rate of 5%. If the required rate of return is 14%, what should you pay per share?