Question $6$

a$)$ Seven years ago, an investor bought $200$ shares in Platinum Mines for $$7\mathrm{.}50$ each.

If the shares are currently trading at $$11\mathrm{.}96$ per share, determine the nominal rate

of interest, compounded quarterly, that was earned on the shares.

b$)$ A home loan worth $$650,000$ at $8\mathrm{.}32\%$ per year, compounded monthly, is paid off

with monthly payments of $$5,450\mathrm{.}48.$ How long will it take to pay off the loan if

payments are made at the beginning of each month?

c$)$ A trusted friend of yours present you with an investment opportunity. If you

invest $$26,500$ now into this investment, then your friend can guarantee the

following cash inflows to occur:

If the effective discount rate is $10\mathrm{.}25\%$ per year determine the net present value.