Today, you borrow $500,000 to purchase a house. The loan is to be repaid with

monthly payments of equal amounts, with the first payment being due 1 month from

today and the last payment being due 30 years from today. The interest rate on the

loan is 6% per year compounded monthly. If you make every payment for the next

10 years on time, what will the remaining balance on the loan be immediately after

you make the payment 10 years from today? Round all intermediate calculations to

6 decimal points. Your final answer should be within $5 of the correct answer

choice.

$418,428.62

$333,333.33

$416,638.65

$451,391.25

Stock AAA pays semiannual dividends. The stock has just paid a dividend, thus the

next dividend is expected to be paid in exactly 6 months and each subsequent

dividend is expected to be paid 6 months after the previous dividend. It is expected that the amount of the dividend paid 6 months from today will be $3.50 and that each subsequent dividend after the dividend coming 6 months from today will be 1.7% greater than the previous dividend. The price of the stock is $140

What is the semiannually compounded annual discount rate being used to value the stock?

Round all calculations to 6 decimal points. Your final answer should be within 0.05%

of the correct answer choice.

8.40%

5.00%

2.50%

4.20%