Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of

Question:

Kathy Myers frequently purchases and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $13,000 for 200 shares of Malti Company's common stock. She received a $420 cash on the stock at the end of each year for three years. At the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 14% on all of her investments. She is not sure whether the Malti Company stock provided a 14% return and would like some help with the necessary computations.
Required:
1. Compute the that Kathy earned on her investment in Malti Company stock. Round your answer to the nearest whole dollar.
2. Did the Malti Company stock provide a 14% return?
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