3-47 Mr. Sansome withdrew $1000 from a savings account and invested it in common stock. At the end of 5 years, he sold the stock and received a check for $1307. If Mr. Sansome had left his $1000 in the sav- ings account, he would have received an interest rate of 5%, compounded quarterly. Mr. Sansome would like to compute a comparable interest rate on his common stock investment. Based on quarterly com- pounding, what nominal annual interest rate did Mr. Sansome receive on his investment in stock? What effective annual interest rate did he receive?