Compute the annual expected return on a stock which has a market price of $112, pays no dividends, and is expected to sell for $130+U dollars in 5 years.

A stock has a price (i.e., present value of all cash flows from the stock expected by investors) of $13.00 today. It is expected to pay a dividend of $1 per share next year, $1.10 per share in the following year, $1.20 in the subsequent U years (i.e., pay a dividend of $1.20 in years 3 through year U+2 into the future), and then be sold for $15.00 in U+2 years (where that $15 represents the present value of all dividends expected after U+2 years). Compute the interest rate or expected return on this stock (i.e., iterate to find the r that sets the sum of the present value of the future expected cash flows equal to the $13 present value).

If you take out a 7-year $420,000+U mortgage on your home that has an interest rate of 3.75%, compute how much principal you will be paying back in the first month.

U = 13