The folloving chart shows monthly figures for Apple stock in 2010.350317.13300317.44294 07255.96260.09250235.97258.77246.94211.98235 86218.95200195.46150100Mar-10May-10Jul-10Marked are the following points on the chart.Jan. 10Feb. 10Mar. 10Apr. 10May 10June 10211.98195.46218.95235.97235.86255.96July 10 Aug. 10Sep. 10Oct. 10 Nov. 10Dec. 10246.94260.09258.77294.07317.13317.44Calculate to the nearest 0.01% your monthly percentage return (on a simple interest basis) if you had bought Apple stock in August and sold in December.%Jae-10Feb-10Apr-10Jun-10Aug-10Sep-10Oct-10Nov-10Dee-10

Solution: The formula you are using in class is for Compound interest rate but in the question it is…

The following chart shows monthly figures for Apple stock in 2010. 350 317.13 300 - 317.44 294 07 255.96 260.09 250- 215.97 258.77 246.94 211.98 215 6 218.95 200+ 195.46 150+ 100- Nov-10 Marked are the following points on the chart. Jan. 10 Feb. 10 Mar. 10 Apr. 10 May 10 June 10 218.95 235.97 211.98 195.46 235.86 255.96 July 10 Aug. 10 Sep. 10 Oct. 10 Nov. 10 Dec. 10 246.94 260.09 258.77 294.07 317.13 317.44 Calculate to the nearest 0.01% your monthly percentage return (on a simple interest basis) if you had bought Apple stock in August and sold in December. Je-10 Fib-10 Mar 10 Apr-10 Ma-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Dee-10