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HACE 3200 EXAM 3
MORE INVESTING PRACTICE PROBLEMS
If you want to have $3.2 million dollars in your stock portfolio in 25 years and you can
earn an annual rate of return on your investments of 8.2%, how much do you need to
invest annually to have $3.2 million dollars in 25 years?
d
.
$42,509
Question 2
Calculate the rate of return on a share of stock, if the stock rose from $240 per share to
$385 per share over 1 year, while paying $300 in dividends during the year.
a. 185.4%
Question 3
If you want to have $2.5 million dollars in your investment account in 12 years and you
can get an annual rate of return of 11%, how much do you need to invest each year,
beginning today, to have $2.5 million in your investment account in the future?
d
.
$110,06
8
Question 4
Calculate the annualized rate of return on a share of stock purchased for $83 and sold for $119
after 8 years. Dividends paid during each year were $5 per share.
b
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 Spring '09
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