You grandfather won a lottery years ago. The value of his winnings at the time was $50,000

You grandfather won a lottery years ago. The value of his winnings at the time was $50,000. He invested this money such that it will provide annual payments of $2,400 a year to his heirs forever. What is the rate of return?    A.  4.75 percent B.  4.80 percent C.  5.00 percent D.  5.10 percent E.  5.15 percent

87.	The preferred stock of Casco has a 6.25 percent dividend yield. The stock is currently priced at $59.30 per share. What is the amount of the annual dividend?    A.  $3.30 B.  $3.35 C.  $3.40 D.  $3.71 E.  $3.90 C = $59.30 × 0.0625 = $3.71

88.	Your credit card company charges you 1.65 percent interest per month. What is the annual percentage rate on your account?    A.  18.95 percent B.  19.80 percent C.  20.90 percent D.  21.25 percent E.  21.70 percent APR = 0.0165 × 12 = 19.80 percent

89.	What is the annual percentage rate on a loan with a stated rate of 2.75 percent per quarter?    A.  11.00 percent B.  11.09 percent C.  11.18 percent D.  11.27 percent E.  11.31 percent APR = 0.0275 × 4 = 11.00 percent