APPENDIX B:
APPENDIX D:
A stock costs $70 and pays a $4 annual dividend. If you expect to sell the stock after six years for $90, what is your anticipated return on the investment? Use Appendix Band Appendix D to answer the question. Round your answer to the nearest whole number. : % Interest Factors for the Present Value of One Dollar 9% Time Period (e.g. year) 1 2 3 4 5 917 Nm 1% .990 980 971 961 951 2% 3% .980 971 1961 .943 .942 915 924 .889 1906 .863 4% 1962 .925 .889 .855 .822 5% 952 .907 .864 .823 .784 6% .943 .890 .840 .792 .747 7% .935 .873 .816 .763 .713 8% .926 .857 .794 .735 .681 .842 .772 .708 .650 10% .909 .826 .751 .683 .621 12% 14% .893 .877 .797 .769 .712 .675 .636 .592 .567 519 15% .870 .756 .658 572 497 16% .862 .743 .641 .552 .476 18% .847 .718 .609 1516 437 20% 24% .833 .806 .694 .650 .579 .524 482 423 402 .341 28% .781 .610 -477 373 .291 6 7 8 9 10 942 933 .923 914 .905 .888 838 .871 .813 .853 .789 .837 .766 .820 .744 .790 .746 .705.666 630 596 .760 711 .665.623 .583 547 .731 .677 .627 582 .540 502 .703 645 592 544 .500 460 .676 614 .558 508 .463 .422 564 .513 467 424 386 .507 456 432 .452 400 376 404 .351 .327 361 .308 .284 .322 .270 .247 410 .370 354 314 .305 .266 .263 .226 .227 191 .335 .279 .233 .194 .162 .275 .222 .179 .144 .116 .227 .178 .139 .108 .085 11 12 13 14 15 .896 .887 879 .870 .861 .804 .788 .773 .758 .743 .722 .701 .681 .661 .642 .650 585 .625 .557 .601 .530 .577 .505 .555 .481 .527 497 .469 .442 .417 475 444 415 388 362 429 .397 .368 .340 1315 .388 .356 -326 .299 .275 .350 319 .290 .263 .239 .287 .257 .229 .205 .183 .237 .215 .208 187 -182 .163 .160 .141 .140 .123 .195 162 135 .168 137 .112 .145 116 .093 .125 .099 .078 .108 .084 .065 .094 .076 .061 .049 .040 .066 ,052 .040 .032 .025 16 17 18 19 20 .853 .844 .836 .828 .820 .728 .714 .700 .686 .673 .623 .605 .587 .570 .554 .534 .513 494 475 456 458 436 416 396 377 394 .371 .350 .331 .312 339 317 .296 .276 .258 .292 .270 .250 .232 .215 .252 .231 .212 .194 .178 .218 .163 .123 .107 .093 .071 054 .032 .019 .198 .146 108 .093.080 .060 .045 026 015 .180 130.095 .081 069 .051 038 021 .012 .164 .116 .083.070 060 .043031 .017 .009 .149 .104 .073.061.051.037 026 014 .007 25 .780 .610 478 .375 .295 .233 .184 .146 .116 .092 .059 038 .030 .024 .016 .010 .005 .002 30 .742 .552 .412 308 .231 .174 .131 .099 .075 .057 .033 .020 .015 .012 .007 .004 .002 .001 Interest Factors for the Present Value of an Annuity of One Dollar Time Period (e.g. year) 1 2 3 4 Nmin 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1.981 1.868 1.766 1674 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1.966 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 6 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 98.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 11 12 13 14 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6.424 5.842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7.606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 17 18 19 20 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.312 7.824 6.974 6.265 5.669 5.162 4.730 4.003 3.503 3.088 2.758 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.002 7.120 6.373 5.749 5.222 4.775 4.059 3.518 3.097 2.763 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 2.767 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 5.877 5.316 4.844 4.097 3.539 3.109 2.770 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4.979 4.160 3.569 3.124 2.778
