SOLUTION: John bought stock for 4550.00 dollars and after 6 months, the value of his shares had risen by 124.00 dollars and dividends totaling 133.42 dollars has been paid. Find the simple i

Question 1162003: John bought stock for 4550.00 dollars and after 6 months, the value of his shares had risen by 124.00 dollars and dividends totaling 133.42 dollars has been paid. Find the simple interest rate, r he earned on this investment if he sold the stock at this time.
Answer by ikleyn(52776) (Show Source): You can put this solution on YOUR website!
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His earning from his investment would be 124.00 + 133.42 dollars after 6 months.


His simple interest rate for 6 months would be this ratio  .


But since we want to know his simple interest per year, we double this ratio.


So we get finally  the annual interest rate  r =  = 0.113 = 11.3%.    ANSWER

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