Tara and Arnold have found their dream house. They will make monthly payments of $1,000 each (that is, Tara will pay $1,000 and Arnold will pay $1,000 for a total payment of $2,000 per month) for 30 years and the bank has quoted them a rate of 5%. Approximately how much are Tara and Arnold borrowing?

Rosemary just received a call from a lawyer, who informed her that a distant cousin of hers left her 400 shares of preferred stock. The attorney told Rosemary that the inheritance was worth approximately $25,000 and the shares paid an annual dividend of $3.75 per share. What rate of return is the stock getting? If going rates in the marketplace are 7%, should Rosemary keep the stock or sell it? ____________