A certain stock has grown continuously from 1980 to 2015. A $10,000 investment in the stock in 1980 would be worth $3,500,000 in 2015. Find the stock's average annual growth rate during this period. Round to the nearest percent.

Answers

Answer 1

If a certain stock has grown continuously from 1980 to 2015, for this period of time  its average annual growth rate   is 18%.

It is given that A certain stock has grown continuously from 1980 to 2015.

Stock's initial value in 1980 (I) = $10,000

Stock's final value in  2015 (F) = $3,500,000

time period t = 2015-1980 = 35 years.

Since, the stock has grown continuously,  it should have grown compounded annually.

Stock's average annual growth rate (r) is calculated as:

[tex]\text{r} = {(\dfrac{F}{I})^{\frac{1}{t}}-1[/tex]

Substitute all the given values in the above formula:

[tex]\text{r} ={ (\dfrac{3500000}{10000})^{\frac{1}{35}}-1[/tex]

[tex]\text{r} = {(350})^{\frac{1}{35}}-1[/tex]

[tex]r = (350)^{0.02857142857}-1[/tex]

[tex]r=1.18219102629-1[/tex]

[tex]r=0.18219102629[/tex]

[tex]r=0.18[/tex]

[tex]r\approx 18\%[/tex]

Hence, stock's average annual growth rate during the period of 35 years is 18%.

Learn more about growth rate here:

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9514 1404 393

Answer:

  64r -48r -144

Step-by-step explanation:

The January cost expression is ...

  62p -48p -144 -432 = profit

The cost is identified as having 3 components, so the profit will have 4 components:

  (selling price)×p - ((cost per unit)×p +(fixed monthly cost)) -(first month startup cost) = profit

Comparing this to the given equation, we identify the components as ...

  selling price = 62

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We note that 432 = 3×144, so is consistent with the description of startup costs.

Increasing the selling price by $2 will raise it from 62 to 64. In February, the initial month startup cost disappears, so the profit equation becomes ...

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Answer:

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Step-by-step explanation:

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Answers

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Answer:

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