Problema Solution

An Investor purchases 344 shares at $36.28 a share, holds the stock for 328 days,and then sells the stock for $46.93 a share. Assume a 360 year. What is the rate of interest? (round to three decimal places)

Answer provided by our tutors

The rate of interest is r

46.93 = 36.28(1+(328/360)r)

r = 32.33%

So the rate of interest is 2.33%


 


Corrected


Solution:

The rate of interest is r

46.93 = 36.28(1+(328/360)r)

r = 32.219%

So the rate of interest is 32.219%