If $396 is invested at an interest rate of 13% per year and is compounded continuously, how much will the investment be worth in
1 answer:
The worth of investment of $396 after 3 years will be $584.884. Thus, option A is correct.
The interest rate has been the amount of the interest that has been paid on the principal amount of the loan. The compounding has been resulted with the interest by using the expression:
Where, from the given investment, Invested amount or principal amount is .
Rate of interest per year is .
Time of investment is years.
Substituting the values for the compound amount (<em>A</em>) after 3 years has been:
The worth of investment of $396 after 3 years will be $584.884. Thus, option A is correct.
For more information about the compound interest, refer to the link:
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Answer:
The amount of the last annual dividend paid is <u>$4.3</u>.
Explanation:
Given:
The common stock of Zeta Group sells for $42 per share, has a rate of return of 12.2 percent, and a dividend growth rate of 1.8 percent annually.
Now, to find the amount of last annual dividend paid.
Let the amount of last annual dividend paid be
Price of per share () =
Rate of return () =
Rate of dividend growth () =
Now, to get the amount of last dividend paid we put formula:
<em>Multiplying both sides by 0.104 we get:</em>
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<em>Dividing both sides by 1.018 we get:</em>
Therefore, the amount of the last annual dividend paid is $4.3.