Q$8$: Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $$22,000$ for $900$ shares of Malti Company$$s common stock. She received a $$684$ cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $$22,000.$ Kathy would like to earn a return of at least $9\%$ on all of her investments. She is not sure whether the Malti Company stock provide a $9\%$ return and would like some help with the necessary computations.

Click here to view Exhibit $7$B$-1$ and Exhibit $7$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

$1.$ Compute the net present value that Kathy earned on her investment in Malti Company stock.

$2.$ Did the Malti Company stock provide a $9\%$ return?