Mr
Subject:EconomicsPrice: Bought3
Mr. Duggan withdrew $1000 from a saving account and invested in common shares. At the end of five years, he sold the shares and gained $1,307. However, if he had left the $1,000 in the saving account, he would have received an interest rate of 5% compounded quarterly. If compounding is quarterly, what nominal annual interest rate did he receive on his investment in common shares? What effective annual interest rate did he receive?
