Please HELP! I need to undestand how to solve these $3$ questions: QUESTION $3$

You want to borrow $$1,000,000$ to purchase land for development near the university. If the bank quotes you an effective $7\%$ annual

rate for a $30-$year mortgage, what would the monthly payments be$?$ Hint: The bank is quoting you the effective annual rate $($EAR$)$ which

assumes annual compounding. First, find the monthly APR $($nominal$)$ rate using $=$NOMINAL. Then, find the monthly payment

preferably using $=$ PMT function in Excel.

Monthly payment $=$$$6,320\mathrm{.}68$

Monthly payment $=$$$6,198\mathrm{.}88$

Monthly payment $=$$$6,509\mathrm{.}25$

cannot be determined with the information provided.

QUESTION $4$

What is the PV of a perpetuity paying $$5$ each month, beginning next month, if the monthly interest rate is a constant $0\mathrm{.}5\frac{\%}{?}$ month?

$$1,000$

$$100$

$$60$

$$10$

QUESTION $5$

Walmart pays an annual dividend of $$2\mathrm{.}28.$ The dividend is expected to increase by $3\%$ per year $($the inflation rate$)$ forever. The price of

the stock is $$165$ per share. At what cost of capital is this stock priced?

$r=1\mathrm{.}38\%$

$r=2\mathrm{.}00\%$

$r=4\mathrm{.}00\%$

$r=4\mathrm{.}38\%$