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An investor purchases 130 shares of a stock at $12.25 per share. After 120 days, the investor sells the stock for $17.5 per share. Using
An investor purchases 130 shares of a stock at $12.25 per share. After 120 days, the investor sells the stock for $17.5 per share. Using the commission schedule below find the annual rate of interest earned by this investment. Explain your answer and express the answer as a percentage, correct to three decimal places.
Principal | Commission |
Under $2000 | $25 + 1.4% of principal |
$2000 - $7000 | $40 + 1.2% of principal |
Over $7000 | $100 + 0.8% of principal |
An investor purchases 130 shares of a stock at $12.25 per share. After 120 days, the investor sells the stock for $17.5 per share. Using the commission schedule below find the annual rate of interest earned by this investment. Explain your answer and express the answer as a percentage, correct to three decimal places. Principal Commission Under $2000 $25 + 1.4% of principal $2000 - $7000 $40 + 1.2% of principal Over $7000 $100+ 0.8% of principal For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI S Paragraph Arial 14px Ix III
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