1) Rafael purchased 100 shares of corporate stock 7 years ago for $32 a share plus brokerage fees totaling $90. He received quarterly dividends of 40 cents per share. Nathan just sold the stock, immediately after receiving the 28th quarterly dividend, for $41.42 per share less brokerage fees totaling $125. Calculate Rafael's rate of return.

a) 7.82%

b) 7.31%

c) 1.83%

d) 4.12%

2) Suppose you invest $50 each month (starting today) into a mutual fund. You reinvest distributions. At the end of 5 years, you sell all your shares and receive $3,485. Calculate your rate of return.

a) 133.69%

b) 0.48%

c) 5.96%

d) 5.77%