eBook Problem 7-11 You purchase a stock for $25 and expect its price to grow annually at a rate of 6 percent. Use Appendix A to answer the questions. Round your answers to the nearest cent. a. What price are you expecting after four years? $ 158 b. If the rate of increase in the price doubled from a percent to 12 percent, would that double the increase in the price? Doubling the growth rate more than doubles the price appreciation. The increase in the price at 6% is $ 12% is $ 247 158 and at Interest Factors for the Future Value of One Dollar Time Period 9 year) 2 1 2 3% 4% 5% 1.010 1.020 1.030 1.040 1.050 1.020 1.040 1.061 1.082 1.102 1.030 1.061 1.093 1.125 1.158 1.041 1.082 1.126 1.170 1.216 1051 1.104 1.159 1.217 1.276 6% 1.060 1.124 1.191 1.262 1.338 7% 1.070 1.145 1.225 1211 1.403 1.080 1.166 1.260 1260 1.469 10% 1.100 1.210 1.331 1.464 1.611 1.090 1.188 1.295 1.412 1.539 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 3 1.150 1.322 1.521 1.749 2.011 18% 1.180 1.392 1.643 1.939 2.288 1.160 1.346 1.561 1.811 2.100 20% 1.200 1.440 1.728 2.074 2.488 4 2 .313 2.436 6 7 8 0 10 1,062 1.126 1.072 1.149 1.083 1.172 1.094 1195 1.105 1.219 1.194 1.265 1.340 1.230 1.316 1.407 1.267 1.369 1.477 1.305 1.422 1.551 1.344 1.480 1.629 1.419 1.501 1.504 1,606 1.594 1.718 1.689 1.828 1.791 1967 1.587 1.714 1.851 1999 2.159 1.677 1.772 1.8281.949 1.993 2.144 2.172 2.358 2.367 2.594 1.974 2.195 2.211 2.502 2.476 2.853 2.7733.252 3.106 3.707 2.700 3.186 3.759 4.436 5.234 2.986 3.583 4.300 5.160 6.192 3.518 4.046 3.803 4.411 11 12 13 14 15 1.116 1.127 1.130 1.149 1.161 1.243 1268 1.294 1.319 1.346 1.384 1.539 1.710 1.898 2.105 1.426 1.601 1.796 2.012 2.252 1.469 1.665 1.885 2.133 2.410 1.513 1.732 1.980 2.261 2.579 1.558 1.801 2.079 2.397 2.759 2.332 2.518 2720 2.937 3.172 2.580 2.813 3.066 3.342 3.642 2.853 3.138 3.452 3.797 4.177 3.479 4.226 3.896 4.818 4.363 5.492 4.887 6.261 5.4747.138 4.652 5350 6.153 7076 8.137 5.11 5.936 6.886 7988 9.266 6.176 2.287 8.599 10.147 11.973 7430 8.916 10.699 12.839 15.407 16 1173 1.373 1.605 1.873 2.183 2.540 2.952 3.426 17 1184 1.400 1.653 1.948 2.292 2.693 3.1593.700 18 1196 1.428 1.7022026 2407 2854 3.380 3.996 19 1208 1.457 1.754 2.107 2.527 3.026 3.612 4.316 2012201486 1.806 2.191 2.653 3.207 3.870 4.661 3.970 4.328 4.717 5.142 5.604 4.595 5.054 5.560 6.116 6.728 6.130 6.866 7690 8.613 9.646 8.137 9.276 10.575 12.056 13.743 9358 10.748 10.761 12 468 12 375 14.463 14.232 16.777 16.367 19.461 14.129 16 622 19.673 23.214 27.393 18.488 22 186 26.623 31 948 38.337 1.282 16412094 2.666 3.386 4.292 5.427 1.348 1.811 2.427 3.243 4322 5.743 7612 95.396 6.848 8.623 10.063 13.268 10.83517.000 26.462 32.91940.874 62.688 17449 29.960 50.950 66.212 85.850 143.370 237.370
