Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text: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 nearest cent.)
Principal (Value of Stock)
Under $3,000
$3,000 to $10,000
Commission
$25+1.8% of principal
$37+1.4% of principal
Over $10,000
An investor purchases 291 shares at $12.36 a share, holds the stock for 30 weeks, and then sells the stock for $20.06 a share.
$107+0.7% of principal
The annual rate is %. (Round to five decimal places.)
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