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You sold 100 shares of stock today for $30 per share that you paid $20 for 6 years ago. Determine the average annual rate of return on your investment, assuming the stock paid no dividends.

Respuesta :

Answer:

7%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

The NPER represents the time period.  

Given that,  

Present value = 100 shares × $20 per share = $2,000

Future value = 100 shares × $30 per share = $3,000

PMT = 0

NPER = 6 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  the answer would be 7%

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