# Help me choose the correct answer...?

**shahimermaid**

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4. A financial advisor tells you that you can make your child a millionaire if you just start saving early. You decide to put an equal amount each year into an investment account that earns 7.5% interest per year, starting on the day your child is born. How much would you need to invest each year (rounded to the nearest dollar) to accumulate a million for your child by the time he is 35 years old? (Your last deposit will be made on his 34th birthday.) (Points : 1)
$6,525
$7,910
$12,500
$20,347
5. How much money must you pay into an account at the end of each of 20 years in order to have $100,000 at the end of the 20th year? Assume that the account pays 6% per year, and round to the nearest $1. (Points : 1)
$1,840
$2,028
$2,195
$2,718
6. Bell Corp. has a preferred stock that pays a dividend of $2.40. If you are willing to purchase the stock at $11, what is your required rate of return (round your answer to the nearest .1% and assume that there are no transaction costs)? (Points : 1)
21.8%
11.0%
9.1%
20.1%
7.Kilsheimer Company just paid a dividend of $5 per share. Future dividends are expected to grow at a constant rate of 7% per year. What is the value of the stock if the required return is 16%? (Points : 1)
$33.44
$55.56
$59.44
$65.87

- 13 years ago

**the options are given against each question**

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