SOLUTION: you have 10000$ available for investment in stock. you are looking for a growth stock that can grow your investment to $35000 over five years. the growth rate are

Question 1011068: you have 10000$ available for investment in stock. you are looking for a growth stock that can grow your investment to $35000 over five years. the growth rate are
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
you have 10000$ available for investment in stock. you are looking for a growth stock that can grow your investment to $35000 over five years.
the growth rate is ?
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V(5) = P(1 + rt)
35000 = 10000(1 + 5r)
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3.5 = 1 + 5r
2.5 = 5r
r = 0.5 or 50%
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Cheers,
Stan H.
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