Author Question: Donna makes annual end of year payments of 5,403.71 on a four year loan with an interest rate of 13 ... (Read 831 times)

Mr.Thesaxman · **on:** Jul 10, 2018

Donna makes annual end of year payments of 5,403.71 on a four year loan with an interest rate of 13 percent. The original principal amount was: (Round to the nearest whole dollar)

A) 16,073
B) 22,139
C) 15,092
D) 17,175

Question 2

Microsoft Inc.'s dividends are expected to grow at a rate of 1 per year in perpetuity.

If the appropriate rate of return on such investments is 11 and the price of a Microsoft share is 20.20, then what is the consensus market estimate of the next dividend? (Assume that next dividend will be paid in one year.)
A) 2.02
B) 2.22
C) 2.12
D) 2.17
E) 2.24