INVESTING PRACTICE PROBLEMS
Question 1
If you want to have $2.3 million dollars
($2,300,000)
in your investment account in 30
years and you can earn an annual rate of return on your investments of 9.5%, how much
do you need to invest annually to have $2.3 million dollars in 30 years?
Question 2
Calculate the rate of return on a share of stock, if the stock rose from $120 per share to
$285 per share over 1 year, while paying $100 in dividends during the year.
Question 3
If you want to have $5.5 million dollars
$5,500,000
in your investment account in 30
years and you can get an annual rate of return of 12%, how much do you need to invest
each year, beginning today, to have $5.5 million in your investment account in the
future?
Question 4
Calculate the annualized rate of return on a share of stock purchased for $52 and sold for $109
after 13 years. Dividends paid during each year were $3 per share.
Question 5
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 Spring '09
 B
 Annual rate

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