Question
Sherwin Williams will receive $21,250 a year for the next 16 years as a result of a picture he has painted. Use Appendix D for
Sherwin Williams will receive $21,250 a year for the next 16 years as a result of a picture he has painted. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.
a. What is the present value of these payments if the discount rate is 6 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Mr. Dow bought 100 shares of stock at $27 per share. Three years later, he sold the stock for $33 per share.
What is his annual rate of return? Use Appendix B for an approximate answer, but calculate your final answer using the financial calculator method. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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