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Readme [11.4K]
3 years ago
5

Your grandfather invested $1,000 in a stock 36 years ago. currently the value of his account is $318,000. what is his geometric

return over this period?
Business
1 answer:
e-lub [12.9K]3 years ago
4 0
It would be 8,833.33 over the years
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Answer:

25.94%

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Assume, Face value of bond =$1000

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Purchase Price = 1000/2.65329770514

Purchase Price = $376.89

Selling Price after one year:  1000/(1+I)^19. Where i=yield=4%=0.04, N=19

Selling Price=1000/(1.04^19)

Selling Price = 1000/2.10684917599

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Answer:

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it maks sence, duh.

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