I need some help on some finance questions(adsbygoogle = window.adsbygoogle || []).push({});

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.

**Physics Forums | Science Articles, Homework Help, Discussion**

Dismiss Notice

Join Physics Forums Today!

The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

# Homework Help: Finance stock homework help

**Physics Forums | Science Articles, Homework Help, Discussion**