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
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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):
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
