You are considering purchasing a new caravan that will cost you $35,000. The dealer offers you 1.9% APR financing for 48 months (with payments made at the end of the month). Assuming you finance the entire $35,000 and finance through the dealer, your monthly payments will be (round to the nearest dollar):

a. $414

b. $1001

c. $758

d. $950

Snape wishes to leave a provision in his will that $5,000 will be paid annually in perpetuity to a local charity. How much must he provide in his will for this perpetuity if the interest rate is 5% per annum?

a. $166,666.7

b. $100,000

c. $125,000

d. $83,333.33

A risk-free, zero-coupon bond with a face value of $1,000 has 10 years to maturity. If the YTM is 6.8% per annum, compounded semi-annually, which of the following would be the price of this bond (round to the nearest dollar)?

a. $424

b. $512

c. $184

d. $429

Lucy Company Limited is expected to grow at a constant rate of 8%. If the companys next dividend is $0.15 and its current price is $14.8, what is the required rate of return on this share? (Round to 2 d.p)

a. 9.01%

b. 15.4%

c. 9.2%

d. 7.2%