Figure 3 shows that a $10,000 investment in a growthoriented mutual fund over a 10-year period would have grown to $126,000. What annual nominal rate would produce the same growth if interest was:

(A) Compounded annually?

(B) Compounded continuously?

Express answers as percentages, rounded to three decimal places.

Transcribed Image Text:

$140,000 120,000 100,000 80,000 60,000 40,000 20,000 $10,000 01 2 3 Figure 3 Growth of a $10,000 investment Mutual Fund Russell Index $126,000 $63,000 4 5 67 8 9 10 Years