Bank 2 : 7.25% compounded monthly

I think i need to change from quarterly to monthly or monthly to quarterly, but i am stuck after that.

Q2. you are making a $25,000 investment and feel that a 12 percent rate of return is reasonable given the nature of the risks involved. You feel that you will receive at least $100 in the first year, $36,000 in the second year, and potentially could see a cash outflow of $5000 in the third year. What is the net present value of this investment given your expectation?

A. $229.37

I am using a financial calculator but got a different answer somehow

Year  / CF

0 / -$25000

1 / 100

2/ 36000

3/ -5000

I/Y = 12%

With these inputs, my answer is very far from the actual answer.

Q3. You own a $60,000 portfolio which is invested in two stocks and a risk-free security. Your portfolio expected return is 9.35 percent and the beta is 1.23. Stock A has an expected return of 9 percent and a beta of 1.2 stock B has an expected return of 12 percent and a beta of 1.8. The risk-free rate of return is 4 percent. what is the value of our investment in stock A?

A. $21,000

Thanks,

 

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