Answer:
11.36%
Explanation:
Given:
Selling cost of the stock at the beginning of the year = $22
Selling cost of the stock at the End of the year = $24
Dividends received = $0.50 per share
Thus,
The actual amount received at the end of the year
= Selling cost of the stock at the End of the year + Dividends received
= $24 + $0.50
= $24.50
thus,
the interest received = $24.50 - $22 = $2.50
therefore, the rate of interest = [tex]\frac{\textup{Interest}}{\textup{Initial amount}}\times100[/tex]
or
the rate of interest = [tex]\frac{2.50}{22}\times100[/tex]
or
the rate of interest = 11.36%
