SOLUTION: a 5000 investment in dell computer in 1995 was worth 237000 in 1999 it grew continuously during this time period find the average annual growth rate of the stock
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Question 1054762: a 5000 investment in dell computer in 1995 was worth 237000 in 1999 it grew continuously during this time period find the average annual growth rate of the stock Found 2 solutions by stanbon, MathTherapy:Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! a 5000 investment in dell computer in 1995 was worth 237000 in 1999 it grew continuously during this time period find the average annual growth rate of the stock
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A(t) = P(1+(r/n))^(nt)
23700 = 5000(1+r)^4
18700 = (1+r)^4
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1+r = 4th root of 18700 = 11.69
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rate = 10.69 = 1069%
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Cheers,
Stan H.
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You can put this solution on YOUR website! a 5000 investment in dell computer in 1995 was worth 237000 in 1999 it grew continuously during this time period find the average annual growth rate of the stock
With CONTINUOUS COMPOUNDING, annual growth rate was:
(