document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1088029>Question 1088029</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A couple bought some stock for $40 per share that pays an annual dividend of $0.80 per share. After 1 year the price of the stock was $44. Find the simple interest rate on the growth of their investment. <BR>\n" );
document.write( "how much % ?\r<BR>\n" );
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document.write( "If $5000 is invested at 7% annual simple interest, how long does it take to be worth $8150? <BR>\n" );
document.write( "How many years?\r<BR>\n" );
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document.write( "Find the future value of an annuity of $1100 paid at the end of each year for 15 years, if interest is earned at a rate of 6%, compounded annually. (Round your answer to the nearest cent.) <BR>\n" );
document.write( "How much $ ?\r<BR>\n" );
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document.write( "Find the future value of an ordinary annuity of $500 paid quarterly for 3 years, if the interest rate is 14%, compounded quarterly. (Round your answer to the nearest cent.)<BR>\n" );
document.write( "How much $ ? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #702302 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=702302\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> They started with $40 and at the end of 1 year had $0.80 of dividend and the stock was worth $44.<BR>\n" );
document.write( "That is an increase of $4.80/$40 starting.<BR>\n" );
document.write( "that is 12% increase.<BR>\n" );
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document.write( "8150=5000(1+.07)^n<BR>\n" );
document.write( "divide by 5000<BR>\n" );
document.write( "1.63=(1.07)^n<BR>\n" );
document.write( "ln both sides<BR>\n" );
document.write( "0.48858=n ln (1.07)<BR>\n" );
document.write( "divide ln (1.63) by ln (1.07) and round then.<BR>\n" );
document.write( "7.22 years.<BR>\n" );
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document.write( "FV=(1+r)*P(1+r)^n-1/r<BR>\n" );
document.write( "=(1+(.06))*1100(1+.06))^15-1/0.06<BR>\n" );
document.write( "=1.06*1.3965, round only at end.<BR>\n" );
document.write( "=$27139.78<BR>\n" );
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document.write( "FV=500(1+r/n))^4n-1/(r/n)<BR>\n" );
document.write( "=500(1+.14/4)^12-1/(0.14/4)<BR>\n" );
document.write( "=500(1.035)^12-1/0.035<BR>\n" );
document.write( "=$7300.98 </SPAN>\n" );
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