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ok i really suck at finance in general and definitely suck at math ones....im to

ID: 2687413 • Letter: O

Question

ok i really suck at finance in general and definitely suck at math ones....im totally lost and when i looked for answers to these two questions on the site i get a lot of hits but they are all marked as having had been answered incorrectly and have no work shown to boot so please someone help... 2. Given the information below, compute annualized returns. ASSET PURCHASE PRICE CURRENT PRICE INCOME RECEIVED TIME PERIOD A $20 $26 $2 75 WEEKS B $15 $18 $.40 3 MONTHS C $150 $130 $0.0 2 YEARS D $3.50 $3.00 $.20 8 MONTHS

Explanation / Answer

ASSET PURCHASE PRICE CURRENT PRICE INCOME RECEIVED TIME PERIOD A ) $20 $26 $2 75 WEEKS Annualized return = ( (26-20) + 2 )/20 x 75/52 = 57.692% B ) $15 $18 $.40 3 MONTHS Annualized return = ( (18-15) + 0.40 )/15 x 12/3 =90.67% C) $150 $130 $0.0 2 YEARS Annualized return = ( (130-150) + 0)/150 x 1/2 = - 6.67% D) $3.50 $3.00 $.20 8 MONTHS Annualized return = ( (3-3.5) + 0.20 )/3.5 x 12/8 = - 12.86%