7. At what annual rate would the following have to be invested? $2,626, to grow

Question

7. At what annual rate would the following have to be invested?
$2,626, to grow to $91,242, in 26 years.
Round the answer to two decimal places in percentage form.

8. A firms dividends have grown over the last several years. 3 years ago the f irm paid a dividend of $2. Yesterday it paid a dividend of $4. What was the average annual growth rate of dividends for the firm?
Round the answer to two decimal places in percentage form.

9. TO what amount will the following investment accumulate? $12,840, invested today for 24 years at 11.79 percent, compounded monthly.
Round the answer to two decimal places.

Explanation / Answer

7> 2626*(R^26)=91242 or R=(91242/2626)^(1/26) 1.1462 Or Rate of interest=(1.1462-1)*100 14.62 8>2*(R^3)=4 or R^3=2 or R=(2)^(1/3) 1.2599 or Rate of growth=(1.2599-1)*100 25.99 9>Monthly Interest=11.79/12 0.9825 FV=12840*((1.009825)^(24*12)) 214509.8

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