*SHOW WORK FOR ALL PROBLEMS*

Problems 19, 20, 23 & 25

19) Your employer gives you a stock bonus of $1,000 in your company at the end of each year. You plan to retire in 20 years. The stock has a growth rate of 15 percent per annum. What will the value of your stock be in 20 years? A) $86,421.00 B) $72,035.10 C) $117,810.10 D) $102,443.60 E) Cannot determine with the information provided. 20) Calculate the total amount of interest paid on a $100,000 mortgage. It is a 15-year mortgage, and the interest rate is 6.375. A) $56,085 B) $62,101 C) $55,565 D) $54,742 23) Cheryl Peck purchased a computer network for her classroom. The computer network cost $100,000. She estimates that she can charge $500 for one session in the classroom. Cheryl knows that enrollment will increase over time. She estimates 50 students the first year, 75 students the second year, 100 students the third year, and 150 students the fourth year. If her cost of capital is 12 percent, what is the approximate payback period for this investment? A) 2.75 years B) 1.19 years C) 1.87 years D) 4.00 years 25) What is the future value of $150 invested today for 25 years at a 13% rate of interest per year? A) $2439.10 B) $3184.58 C) $4295.63 D) none of the above