A stock that sold for $17per share at the beginning of the year was selling for$96
at the end of the year. If the stock paid a dividend of $3.57 per share, what is the simple interest rate on the investment in this stock? Consider the interest to be the increase in value plus the dividend.
Wow, let me know what stock that is.
profit = 96-17 + 3.57 = 82.57
I = PRT
82.57 = 17(R)(1)
R = 82.57/17 = 4.857 = appr 486 %
To find the simple interest rate on the investment in this stock, we need to calculate the total increase in value plus the dividend.
Total increase in value = Final stock price - Initial stock price
= $96 - $17
= $79
Total interest earned = Total increase in value + Dividend
= $79 + $3.57
= $82.57
To calculate the simple interest rate, we need to divide the total interest earned by the initial investment and then multiply by 100.
Simple interest rate = (Total interest earned / Initial investment) * 100
= ($82.57 / $17) * 100
= 486.29%
Therefore, the simple interest rate on the investment in this stock is 486.29%.
To calculate the simple interest rate on the investment in this stock, you need to consider the increase in value plus the dividend received.
First, calculate the increase in value per share:
Increase in value = Final price - Initial price
Increase in value = $96 - $17 = $79
Next, calculate the total interest per share:
Total interest = Increase in value + Dividend
Total interest = $79 + $3.57 = $82.57
Finally, calculate the simple interest rate by dividing the total interest by the initial price and multiplying by 100 to get a percentage:
Simple interest rate = (Total interest / Initial price) * 100
Simple interest rate = ($82.57 / $17) * 100
Simple interest rate ≈ 486.29%
Therefore, the simple interest rate on the investment in this stock is approximately 486.29%.