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Unformatted text preview: P 1 = 165238 (165.238 K) P 2 = 68 + 5.5(P/A,%2,12) + 5.5 (P/A,%1,12) (P/F,%2,12) P 2 = 68 + 5.5*10.5753 + 5.5* 11.2551*0.7885 Question 2: Ryan Atwood decided to invest his money and purchased 200 shares of P&G at a price of $30 per share. He hopes to double his investment. How long will he have to wait if the stock price increases at a rate of 20% per year? What should be rate of increase per year for the investment to double in 7 years? Solution: $60 = $30 (F/P, 20%, N) 2= (1.20) N log (2) = N log (1.20) ) 20 . 1 log( ) 2 log( = N N = 3.8 years...
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 Fall '12
 SelçukErdem

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