Jenny Reed bought SSX stock for $18 per share. The annual dividend was $3.00 per share, and after 5 year(s), SSX was selling for $44 per share. Find the simple interest rate of growth of her money to the nearest hundredth of a percent. Round your answer to two decimal places.
A)4.56%
B)28.89%
C)18.64%
D)45.56%
E)85.56%

Question

Quizplus · Accepted Answer

The simple interest rate is calculated as ((Final Value - Initial Value) / Initial Value) / Number of Years. Here, ((44 - 18) / 18) / 5 = 0.4556 or 45.56%.

Jenny Reed Bought SSX Stock for $18 Per Share