Question

Help??
In 2003, Yvonne spent $5.99 on a collectible figurine. In 2008, she sold it for $35. What was the average annual percentage yield (APY) of her investment? Round to the nearest hundredth.

Answer 1

would you use the equation
P0* (1+i)^n = P
where P0 is 5.99, P is 35, and n is 5 years

Answer 2

if so, divide both sides by P0
to get
\[ (1+i)^n = \frac{P}{P_0}\]

raise both sides to the 1/n power to get
\[1+i = \left(\frac{P}{P_0} \right)^\frac{1}{n} \]

Answer 3

can you do this ?

Answer 4

@phi So 1+i = 0.70%?

Answer 5

what did you get for P/P0 ?

Answer 6

Oh whoops. Did it backwards. I did it again.. 1.42%?

Answer 7

better, but I would keep a few more decimals. 1.4234

so
1+i = 1.4234

what is i ?

Answer 8

i=0.4234

Answer 9

the next step is add -1 to both sides
-1+1+i = 1.4234-1

Answer 10

What was the average annual percentage yield (APY) of her investment? Round to the nearest hundredth.

looks good. now change to a percent.

Answer 11

thanks!! (: really helped!

Answer 12

the only thing I would change is keep at least one more decimal place
we should start with
1+i= 1.423404 (more than enough)
i= 0.423404
now multiply by 100 to get
42.3404%
now round to the nearest 100th
42.34%