- #1
rain
- 11
- 0
I need some help on some finance questions
1) A stock that sold for $22 at the beginning of the year was selling for $24 at the end of the year. If the stock paid a dividend of $0.50 per share, what is the simple interest rate on an investment in thei stock?
the simple interest rate formula is
A=P(1+rt)
so A=24
P=22
t=1
r=?
am I on the right tract? What do you do with the $0.50 per share?
2. A developer needs $ 80,000 to buy land. He is able to borrow the money at 10% per year compounded quarterly. How much will the interest amount to if he pays off the load in 5 years?
compound interest formula is
A=P(1+i)^n...do you use this formula?
I don't really understand what the question is asking.
Thanks.
1) A stock that sold for $22 at the beginning of the year was selling for $24 at the end of the year. If the stock paid a dividend of $0.50 per share, what is the simple interest rate on an investment in thei stock?
the simple interest rate formula is
A=P(1+rt)
so A=24
P=22
t=1
r=?
am I on the right tract? What do you do with the $0.50 per share?
2. A developer needs $ 80,000 to buy land. He is able to borrow the money at 10% per year compounded quarterly. How much will the interest amount to if he pays off the load in 5 years?
compound interest formula is
A=P(1+i)^n...do you use this formula?
I don't really understand what the question is asking.
Thanks.