A couple bought some stock for $30 per share that pays an annual dividend of $0.90 per share. After 1 year the price of the stock was $33. Find the simple interest rate on the growth of their investment.

The simple interest rate will be found as follows:

A=Pe^ (rt)

where:

A=$33

P = (30+0.9) = $30.9

t=1 year

plugging into our formula we get:

33=30.9e^ (r*1)

33=30.9e^r

1.067961=e^r

introducing natural logs we get

r=ln 1.06761

r~0.06575

Answer: 0.06575 or 6.575%