1. Yield on investment
Mr. Dow bought 100 shares of stock at $18 per share. Three years later, he sold the stock for $24 per share.
What is his annual rate of return? Use Appendix B for an approximate answer, but calculate your final answer using the financial calculator method. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Annual rate of return %
2. Future value
You invest a single amount of $16,850 for 7 years at 15 percent. At the end of 7 years you take the proceeds and invest them for 14 years at 17 percent.
How much will you have after 21 years? Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Future Value