Homework Help: finance for decision makers

Posted by usha on Sunday, February 1, 2009 at 6:04pm.

After 20 years, 100 shares of stock originally purchased for $1000 was sold for $5,000. What was the yield on the investment? Choose the closest answer.
a) 19%
b) 5%
c) 12.7%
d) 8%

finance for decision makers - bobpursley, Sunday, February 1, 2009 at 6:28pm
final =initial(1+i)^t
5=(1+i)^20
log5=20log(1+i)
.0349=log(1+i)
1.08=1+i
finance for decision makers - usha, Sunday, February 1, 2009 at 8:10pm
Thank you for your response. What is the answer. Can you explain me the problem?

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