Interest rate did he receive on his investment in stock

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Reference no: EM13858883

Mr. Sansome withdrew &1000 from a savings account and invested it in common stock. At the end of 5 years, he sold the stock for $1207. In the savings account, he would have received an interest rate of 3%, compounded quarterly. He would like to compute a comparable interest rate on his common stock investment. What effective annual interest rate did he receive? Based on quarterly compounding, what nominal annual interest rate did he receive on his investment in stock?

Reference no: EM13858883

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