Use the commission schedule from Company A shown in the table to find the annual rate of interest earned on the investment. (Note: commissions are rounded to the nearest cent.)Principal (Value of Stock)CommissionUnder $3,000$25+1.8%of principal$3,000 to $10,000$37+1.4%of principalOver $10,000$107+0.7%of principalAn investor purchases250shares at$12.22a share, holds the stock for51weeks, and then sells the stock for$14.41a share.Question content area bottomPart 1The annual rate isenter your response here%.(Round to five decimal places.)

Solution:- Annual rate of return means the percentage of gain to the amount invested, adjusted to…

Answered: Use the commission schedule from…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 1PEA

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Use the commission schedule from Company A shown in the table to find the annual rate of interest earned on the investment. (Note: commissions are rounded to the nearest cent.)

Principal (Value of Stock)	Commission
Under $3,000	$25+1.8% of principal
$3,000 to $10,000	$37+1.4% of principal
Over $10,000	$107+0.7% of principal

An investor purchases

250

shares at

$12.22

a share, holds the stock for

weeks, and then sells the stock for

$14.41

a share.

Question content area bottom

Part 1

The annual rate is

enter your response here%.

(Round to five decimal places.)

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