Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 2 - Section 2.1 - Simple Interest - Exercises - Page 133: 33

Answer

selling in November gives the highest annual return of $ r\approx 58.96\%$

Work Step by Step

With $ INT=FV-PV\quad$ we solve $INT=PVrt \quad $for r, (divide both sides with $PV\cdot t$) $r=\displaystyle \frac{FV-PV}{PV\cdot t}$ We build a table based on this formula for each month, with PV= $235.97$ , and each month being $\displaystyle \frac{1}{12}$ of a year From the table we see that selling in November gives the highest annual return of $ r\approx 58.96\%$
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