1) An investment is purchased for $40 at the beginning of the year 2012. Transaction costs and taxes added another 10% to the Purchase Price. The owner pays an extra $6 in management fees.
Cash inflows came in during the year in the form of Dividends $8 and a selling price of $55 accompanied by $3 selling Fee. Suppose that this investor is in a 20% tax bracket; calculate the Net After-Tax Rate of Return. (Express in 2 decimal places and in %).

2) Gary invests $500 K today in Mutual Fund paying 12% a year compounded quarterly. What's the Effective rate on this investment (Ignore the effects of taxes)? How long does it take me to become millionaire? (Express your answer in quarters plus 2 decimal places)

4) Chase Bank has a policy of setting a 15% to 20% margin for error when giving out mortgage loans to first-time homeowners. The Dow family is eying its first home. Chase Bank conducted a Cash Flow analysis that reveals about 6.5 K of monthly disposable income and 3.5 K in monthly outflows. The bank further estimates that the Dow family may need another $500 per month in emergency funds.
How much can the Dow Family afford to borrow towards their first home if the APR on their 30-year Mortgage is 6%. Assume that the mortgage loan is signed on January 1st 2012 and paid at the end of each month

5) Considering the data of Problem 5 and suppose that the Dow Family is approved for the High-End of the 360-month mortgage estimate. Calculate the Mortgage interest for January, February and March 2012 and State the Mortgage Balance due on April 1st 2012. Assume that Chase Bank charges interest daily even though mortgage is paid monthly.

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1) 10% * 40= 4
40+4+6 = $50 Cash in : $50+$8= $58
Selling price & fee $55 + $3=58
having problem calculating the Net after tax rate of return if investor is in 20% tax bracket