Your Toronto Dominion shares you purchased 5 years ago for $20 are worth $34 today. The annualgrowth in share price has been 11.2%.

Question

Quizplus · Accepted Answer

To confirm, we can use the compound interest formula:

A = P(1+r/n)^(n*t)

where:
A = final amount
P = initial amount
r = annual growth rate (as a decimal)
n = number of times interest is compounded per year
t = time in years

Plugging in the values given:

A = $20(1+0.112/1)^(1*5)
A = $20(1.112)^5
A = $34.32

This confirms that the share price has grown at an annual rate of 11.2%, which means the answer is A.

Your Toronto Dominion Shares You Purchased 5 Years Ago for $20