1. Ad valorem is Latin for "according to value”. Ad Valorem taxes apply to real estate properties. Your town has recently passed a Budget of $79.5 million for next year. Total assess values of the all Real Estate properties in the town is $3, 976 million. According to the town, your home has a assessed value of $280,000. This means your quarterly ad valorem taxes for the next year are likely to be:

a. $ 1,250

b. $ 5,599

c. $ 1,400

d. $ 975

2. Suppose you are a euro-based investor who just sold Microsoft shares that you had bought one year ago. You had invested €15,000 to buy Microsoft shares for $125 per share; the exchange rate was $1.5 per euro. You sold the stock for $155 per share and converted the dollar proceeds into euro at the exchange rate of $1.25 per euro. What is the rate of return on your investment in euro terms?

A) 48.80%

B) 37.81%

C) 31.25%

D) 12.34 %