1. Ten years ago, Raine Corporation earned $0.50 per share. Its earnings this ye

Question

1.                  Ten years ago, Raine Corporation earned $0.50 per share. Its earnings this year were $2.20. What was the growth rate in earnings per share (EPS) over the 10-year period?

1.                  Raine Corporation has just taken out a 1-year installment loan for $72,500 at a nominal rate of 11.0% but with equal end-of-month payments. What amount of the first monthly payment will go toward the repayment of principal? Please show your work. Thanks!!!!!

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Explanation / Answer

Hi,

Please find the answer as follows:

Part A:

Growth Rate = (2.2 - .50)/.50*100 = 340%

Part B:

First monthly payment would comprise of 664.58 towards interest and 5743.09 towards principal. Total amount = 6407.67

Answer is 5743.09

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