Please answer all or none! Thank You.

3

a. You want to have $1,000,000, 25 years from today. Assuming a 7% annual return (which will be compounded monthly), how much do you need to invest each month in order to have the $1,000,000 in 25 years?

b. You can afford a $1,400 per month house payment. You want a 15 year loan. You would like to borrow $200,000. What annual rate of interest will create the exact $1,400 monthly payment, given the terms above?

c. If you have a cost of capital of 10% and your project yields a positive NPV, what can you say for certain about the project?

	The project will have an IRR above 10%.
	The project should be accepted.
	The project will have an IRR equal to 10%.
	The project will have an IRR below 10%. d. The price of a preferred share of stock that pays a 3.00 dividend, has an expected return of 12%, and a tax rate= 30% is_____.