Step-by-step explanation:
They started with $40 and at the end of 1 year had $0.80 of dividend and the stock was worth $44.
That is an increase of $4.80/$40 starting.
that is 12% increase.
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8150=5000(1+.07)^n
divide by 5000
1.63=(1.07)^n
ln both sides
0.48858=n ln (1.07)
divide ln (1.63) by ln (1.07) and round then.
7.22 years.
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FV=(1+r)*P(1+r)^n-1/r
=(1+(.06))*1100(1+.06))^15-1/0.06
=1.06*1.3965, round only at end.
=$27139.78
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FV=500(1+r/n))^4n-1/(r/n)
=500(1+.14/4)^12-1/(0.14/4)
=500(1.035)^12-1/0.035
=$7300.98
