Loading [MathJax]/jax/output/SVG/jax.js
 
+0  
 
0
1989
1
avatar

Microsoft's stock price peaked at 6118% of its IPO price more than 13 years after the IPO.† Suppose that $25,000 invested in Microsoft at its IPO price had been worth $1,500,000 (6000% of the IPO price) after exactly 13 years. What interest rate, compounded annually, does this represent? (Round your answer to two decimal places.)

 Nov 25, 2014

Best Answer 

 #1
avatar+118696 
+5

 

1500000=25000(1+r)1360=(1+r)13601/13=1+rr=601/131

 

60(113)1=0.370190226566422

 

37%

.
 Nov 25, 2014
 #1
avatar+118696 
+5
Best Answer

 

1500000=25000(1+r)1360=(1+r)13601/13=1+rr=601/131

 

60(113)1=0.370190226566422

 

37%

Melody Nov 25, 2014

1 Online Users