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## Homework Statement

If a stock has increased 400% over the last 6 years, then how much does it grow on average per year.

## Homework Equations

400 = 100(1+r/6)^6

## The Attempt at a Solution

Divide both sides by 100

4 = (1+(r/6)^6

Take the sixth root of each side.

1.26 = 1 + (r/6)

Subtract each side by 1

.26 = r/6

Multiply each side by 6

1.5 = r

which can't be right because I doubt the stock has grown 50% per year over the last 6 years.