After 20 years, 100 shares of stock originally purchased for $1000 was sold for $5,000. What was the yield on the investment? Choose the closest answer.

Question

After 20 years, 100 shares of stock originally purchased for $1000 was sold for $5,000. What was the yield on the investment? Choose the closest answer. 
a) 19%        
b) 5% 
c) 12.7% 
d) 8%

bobpursley · Answer

final =initial(1+i)^t 5=(1+i)^20 log5=20log(1+i) .0349=log(1+i) 1.08=1+i

usha · Answer

Thank you for your response. What is the answer. Can you explain me the problem?