You and some of your classmates have decided that you would like to establish a scholarship at nursing students. Everyone agrees that the scholarship endowment should pay $90,000 per year without ever decreasing the principal. If endowments receive returns of 5% when invested, how much money will you and your classmates need to raise?

Select one:

a. Less than $500,000

b. Between $500,000 and $800,000

c. Between $800,000 and $1,200,000

d. Between $1,200,000 and $1,600,000

e. Greater than $1,600,000

You have a required rate of return of 11 percent. One of the companies you have been following has an expected dividend next year of $2.40. The stock has an expected share price of $67.00, next year. What price should you be willing to pay for the stock?

Select one:

a. Less than $60.00

b. Between $60.00 and $62.00

c. Between $62.00 and $64.00

d. Between $64.00 and $66.00

e. Greater than $66.00

You purchase a house for $225,000. After you make your down payment of $50,000, you are financing $175,000 for 30 years at an annual percentage rate of 4.8%. How much are your monthly payments?

Select one:

a. Less than $900

b. Between $900 and $950

c. Between $950 and $1,000

d. Between $1,000 and $1,050

e. Greater than $1,050