Asked Jun 13, 2019

can I have this explained?

After 20 years, 100 shares of stock originally purchased for $1000 was sold for $5,000.
What as the yield on the investment


Expert Answer

Step 1

The formula to calculate the yield on investment:

Yield on investment can be determined using the CAGR- Compound annual growth rate formula


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e) Ending value Beginning value CAGR =

Step 2

Computation of yield on inves...


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(1 year Ending value CAGR = Beginning value (1/20) ($5,000 s1,000 =1.0838- =8.38% II


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