Has to do with interest rate

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asked Sep 2, 2018 153k views

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Konstantin Likhter · Answer 1 · 2018-09-08T18:56:33+0000

1) Value of the stock after n years = 60 (1.03)^n

Where 1.03 means that the yearly interest, i.e when n = 1 is 3%

2) After 7 years the interests are: (1.03)^7 = 1.23, which means a total interest rate over the 7 years of 23%.

Answer: 23%

Has to do with interest rate

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