Answered

Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Get detailed and accurate answers to your questions from a community of experts on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

annual dividends of generic electrical grew from $0.67 in 2012 to $1.04 in 2017. what was the annual growth rate? (round your answer to 2 decimal places.)

Sagot :

QWpurple

Generic Electrical's annual dividends increased by 9.19% from $0.67 in 2012 to $1.04 in 2017.

The value of an asset at a future date is its future value. It is the present value multiplied by the accumulation function, and it represents the nominal amount of money that a particular amount of money will be "worth" at a given point in the future under the assumption of a specific interest rate.

FV = PV (1 + r), where r is the periodic interest rate and n is the number of periods.

$ 1.04 = $ 0.67 ( 1 + r )⁵

( 1 + r )⁵ =  $1.04 / $0.67

( 1 + r )⁵ = 1.5522

( 1 + r )  = 1.5522¹/₅

( 1 + r )  = 1.0919

 r  = 1.0919 - 1

 r  = 0.0919 i.e 9.19 %

Future Value = Present Value x (1 + r)n

9.19% is the annual growth rate or interest rate.

To know more about Future Value, refer to this link:

https://brainly.com/question/11429476

#SPJ4

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.