Answer:
The annual interest rate of return during his investment was 12.28%.
Step-by-step explanation:
Since Julio purchased 1,700 shares of a certain stock for $ 23,750 including commissions, and I have sold the shares 3 years later and received $ 32,500 after deducting commissions, to find the effective annual rate of return on his investment over the 3-year period the following calculation must be performed:
23,750 = 100
32,500 = X
32,500 x 100 / 23,750 = X
3,250,000 / 23,750 = X
136.84 = X
(136.84 - 100) / 3 = X
36.84 / 3 = X
12.28 = X
Therefore, the annual interest rate of return during his investment was 12.28%.
