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    Determine the yield on an investment using interpolation

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    On January 1, 2005, Mr. Horsely bought 100 shares of stock at $12 per share. On December 31, 2008, he sold the stock for $18 per share. What is his annual rate of return? Interpolate to find the answer.

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    On January 1, 2005, Mr. Horsely bought 100 shares of stock at $12 per share. On December 31, 2008, he sold the stock for $18 per share. What is his annual rate of return? Interpolate to find the answer.

    The internal rate of return is defined as that discount rate which equates the present value of a project's expected cash inflows to the present value of the project's ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is his annual rate of return by using interpolation.

    $2.19

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