document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=978805>Question 978805</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Microsoft's stock price peaked at 6118% of its IPO price more than 13 years after the IPO.† Suppose that $15,000 invested in Microsoft at its IPO price had been worth $900,000 (6000% of the IPO price) after exactly 13 years. What interest rate, compounded annually, does this represent? (Round your answer to two decimal places.) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #600193 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=600193\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> P=Po{1+r}^13; r is the interest rate<BR>\n" );
document.write( "900,000=15000 {1+r}^13\r<BR>\n" );
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document.write( "60={1+r}^13<BR>\n" );
document.write( "ln of both sides<BR>\n" );
document.write( "4.093=13  ln{1+r}<BR>\n" );
document.write( "divide by 13<BR>\n" );
document.write( "0.3148=ln (1+r)<BR>\n" );
document.write( "raise to e power<BR>\n" );
document.write( "1.3700 (NOTE: I have not rounded on the calculator until the end)<BR>\n" );
document.write( "1.3700=1+r<BR>\n" );
document.write( "r=37% or  0.37<BR>\n" );
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