1. You sell a stock for $36.00 that you purchased a year ago for $32.

If year end dividends are $1.25 what is your expected return?

16.41%

18.45%

12.5%

14.33%

2. Find the interest rates earned on each of the following. Round each answer to two decimal places.

You borrow $700 and promise to pay back $763 at the end of 1 year. %

You lend $700 and the borrower promises to pay you $763 at the end of 1 year. %

You borrow $98,000 and promise to pay back $119,232 at the end of 5 years. %

You borrow $9,000 and promise to make payments of $2,684.80 at the end of each year for 5 years. %