document.write( "Question 1070578: Microsoft's stock price peaked at 6118% of its I.P.O. price more than 13 years after the I.P.O.† Suppose that $45,000 invested in Microsoft at its I.P.O. price had been worth $2,700,000 (6000% of the I.P.O. price) after exactly 13 years. What interest rate, compounded annually, does this represent? (Round your answer to two decimal places.) \n" ); document.write( "

Algebra.Com's Answer #685624 by Boreal(15235) $\"\"$ $\"About$

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2,700,000=45000(1+r)^13
\n" ); document.write( "60=(1+r)^13
\n" ); document.write( "logs of both sides
\n" ); document.write( "1.78=13 log (1+r)
\n" ); document.write( "round at end, not even here.
\n" ); document.write( "Divide by 13 then raise to the 10th power
\n" ); document.write( "1.370=1+r
\n" ); document.write( "subtract 1
\n" ); document.write( "0.37=r or 37%.
\n" ); document.write( "1.37^13=59.89, so checks with rounding. \n" ); document.write( "

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