Question
Use the commission schedule from Company A shown in the table to find the annual rate of interest earned on the investment. (Note: commissions are
Use the commission schedule from Company A shown in the table to find the annual rate of interest earned on the investment. (Note: commissions are rounded to the nearestcent.)
| Principal (Value of Stock) | Commission |
|---|---|
| Under $3,000 | $25+1.8% of principal |
| $3,000 to $10,000 | $37+1.4% of principal |
| Over $10,000 | $107+0.7% of principal |
An investor purchases 270 shares at $10.86 a share, holds the stock for 32 weeks, and then sells the stock for $18.33 a share.
what is the annual rate? %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Personal Financial Planning
Authors: Lewis J. Altfest
2nd edition
1259277186, 978-1259277184
