Computation of growth rate and interest rate

Reference no: EM1310357

1. The following table presents the Sally's Silly Service Company's net earnings for the past six years. Compute the growth rate in the company's earnings.

Year Return

2002 $2,659

2001 2,500

2000 2,370

1999 2,100

1998 1,890

1997 1,728

2. Timothy borrows $6,930 from the bank. For a four?year loan, the bank requires annual end?of?year payments of $2,281.86. Calculate the interest rate on the loan.

3. Tom is evaluating the growth rate in dividends of a company over the past 6 years. What is the annual compound growth rate if the dividends are as follows:

Year Dividends

1997 $1.38

1998 1.52

1999 1.85

2000 1.80

2001 1.95

2002 2.15

Reference no: EM1310357

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