Shares of common stock in tworoger technologies

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Jose purchased 635 shares of common stock in Tworoger Technologies, Inc. six years ago for$23.40 per share, or $14,859. His financial advisor thinks the stock has peaked and has advised him to sell his shares. The current price is $39.75 per share, which would yield Jose more than $25,000 in cash. Jose calculates his profit as $10,382, or an average of about $1,730 per year over the six-year period. If he decides to sell the stock for $39.75 per share, what will be his rate of return, assuming interest is compounded annually?

Reference no: EM132139872

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