Calculate the rate of return we make per annum, Finance Basics

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Calculate the rate of return we make per annum

Problem

We have a stock Bottine and Despotakis (B&D) which we buy for $10. We keep it for 6 years at which point we sell it for $25. During the six year period, it pays us $12 which we reinvest at 5% annual return. Calculate the rate of return we make per annum.

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Finance Basics: Calculate the rate of return we make per annum

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Finance Basics: Calculate the rate of return we make per annum

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