5.Press 
to obtain B.
6.Press 
1 to obtain the effective growth rate (as a decimal).
7.To make a 
.
Example 1: A stock's price in history is listed below. What effective growth rate does this represent? If the stock continues this growth rate, what is the price projected to be at the end of 1982 (year 7)?
|
| End of | Price |
| |
|
| Year |
| ||
|
|
|
|
| |
|
| 1976(1) | 45 |
|
|
|
| 1977(2) | 51.5 |
|
|
|
| 1978(3) | 53.75 |
| |
|
| 1979(4) | 80 |
|
|
|
| 1980(5) | 122.5 |
| |
|
| 1981(6) | 210 |
|
|
|
| 1982(7) | ? |
|
|
|
|
|
| ||
| Keystrokes | Display |
|
| |
CLEAR | 1.00 |
| First data pair input. | ||
|
|
| |||
45 | 1 |
|
|
|
|
51.5 | 2 | 2.00 |
| Second data pair input. | |
|
|
|
| ||
53.75 | 2 | 3.00 |
| Third data pair input. | |
|
|
|
| ||
80 | 2 | 4.00 |
| Fourth data pair input. | |
|
|
|
| ||
122.5 | 2 | 5.00 |
| Fifth data pair input. | |
|
|
|
| ||
210 | 2 | 6.00 |
| Sixth data pair input. | |
|
|
|
| ||
|
| 0.95 |
| Correlation coefficient (between ln | |
|
|
| y and x). | ||
|
|
|
| ||
1 |
| 27.34 |
| A | |
|
|
| |||
0 |
|
|
|
|
|
|
| 0.31 |
| B | |
|
|
|
|
| |
| 1 | 0.36 |
| Effective growth rate. | |
|
|
|
|
| |
7 |
| 232.35 |
| Projected price at end of year 7 | |
|
| (1982). | |||
|
|
| |||
For repeated use of this routine, the following
KEYSTROKES
DISPLAY
