Question

A couple bought some stock for RM30 per share that pays an annual dividend of

RM0.90 per share. After 1 year, the price of the stock was RM33. Find the simple

interest rate on the growth of their investment.

Answer 1

The answer is "13%".

Explanation:

`P_0 = 30\\\\D_1 = 0.90\\\\P_1 = 33\\\\`

`Increase = 33 - 30 + 0.90\\\\`

`= 3+0.90\\\\=3.90`

`\text{Calculating increasing }\% :`

`= (3.90)/(30) * 100 \\\\= (390)/(30) \\\\= (39)/(3) \\\\= 13\%`