SOLUTION: a 5000 investment in dell computer in 1995 was worth 237000 in 1999 it grew continuously during this time period find the average annual growth rate of the stock

Algebra.Com
Question 1054762: a 5000 investment in dell computer in 1995 was worth 237000 in 1999 it grew continuously during this time period find the average annual growth rate of the stock
Found 2 solutions by stanbon, MathTherapy:
Answer by stanbon(75887)   (Show Source): You can put this solution on YOUR website!
a 5000 investment in dell computer in 1995 was worth 237000 in 1999 it grew continuously during this time period find the average annual growth rate of the stock
-------------------
A(t) = P(1+(r/n))^(nt)
23700 = 5000(1+r)^4
18700 = (1+r)^4
----
1+r = 4th root of 18700 = 11.69
-----
rate = 10.69 = 1069%
------------
Cheers,
Stan H.
------------
Answer by MathTherapy(10555)   (Show Source): You can put this solution on YOUR website!
a 5000 investment in dell computer in 1995 was worth 237000 in 1999 it grew continuously during this time period find the average annual growth rate of the stock
With CONTINUOUS COMPOUNDING, annual growth rate was:  

RELATED QUESTIONS


Pls help me.

The annual growth rate for an investment that is growing continuously is... (answered by stanbon)

I need help with this question.

An intial investment of $5000 earns 8% interst,... (answered by solver91311)

An investment was worth $2500 in 1995. By 2000 it had grown to $3500. Let y be the value... (answered by stanbon)

The annual Gross Domestic Product (GDP) of a country is the value of all of the goods and  (answered by Theo)

The annual Gross Domestic Product (GDP) of a country is the value of all of the goods and  (answered by Boreal)

4.The annual Gross Domestic Product (GDP) of a country is the value of all of the goods... (answered by josmiceli)

 investment of $10,000 in 1997 in the Spartan Investment Grade Bond Fund grew to... (answered by stanbon)

United States health expenses were $428.7 billion in 1985 and $991.4 billion in 1995.... (answered by josmiceli)

An investment earned 5000 in intrest when a simple intrest was paid 20% per annum for a 4  (answered by stanbon)