Solve the problem.
-An investor buys 100 shares of a stock for $20,000. After 5 years the stock is sold for $32,000. If interest is compounded continuously, what annual nominal rate of interest did the original $20,000 investment earn?
(Represent the answer as a percent to three decimal places.)
A) 8.470%
B) 1.200%
C) 9.400%
D) 0.094%

Question

Quizplus · Accepted Answer

The Answer of Solve the problem.
-An investor buys 100 shares of a stock for $20,000. After 5 years the stock is sold for $32,000. If interest is compounded continuously, what annual nominal rate of interest did the original $20,000 investment earn?
(Represent the answer as a percent to three decimal places.)
A) 8.470%
B) 1.200%
C) 9.400%
D) 0.094%

Solve the Problem. -An Investor Buys 100 Shares of a Stock for $20,000