finance for decision makers

posted by usha

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%

  1. bobpursley

    final =initial(1+i)^t
    5=(1+i)^20
    log5=20log(1+i)
    .0349=log(1+i)
    1.08=1+i

  2. usha

    Thank you for your response. What is the answer. Can you explain me the problem?

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