Transaction Size Commission Rate $0 - $1,500 $29 + 2.5% of principal $1,501 - $6,000 $57 + 0.6% of principal $6,001 - $22,000 $75 + 0.30% of principal $22,001 - $50,000 $97 + 0.20% of principal $50,001 - $500,000 $147 + 0.10% of principal $500,001 + $247 + 0.08% of principal
Transaction Size Commission Rate $0 - $1,500 $29 + 2.5% of principal $1,501 - $6,000 $57 + 0.6% of principal $6,001 - $22,000 $75 + 0.30% of principal $22,001 - $50,000 $97 + 0.20% of principal $50,001 - $500,000 $147 + 0.10% of principal $500,001 + $247 + 0.08% of principal
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
The buying and selling commission schedule shown in the table is from an online discount brokerage firm. Taking into consideration the buying and selling commissions in this schedule, find the annual compound rate of interest earned on the investment.
An investor purchases 105 shares of stock at $60 per share, holds the stock for 55 years, and then sells the stock for $135 a share.
The formula required to solve this problem: A=P(1+i)n, where i = r/m and A is the amount at the end of n periods, P is the principal value, r is the annual nominal rate, m is number of compounding periods per year, i is rate per compounding period, and n is total number of compounding periods.
The annual rate of interest is ______ %
Transcribed Image Text:Transaction Size
Commission Rate
$0 - $1,500
$29 + 2.5% of principal
$1,501 - $6,000
$57 + 0.6% of principal
$6,001 - $22,000
$75 + 0.30% of principal
$22,001 - $50,000
$97 + 0.20% of principal
$50,001 - $500,000
$147 + 0.10% of principal
$500,001 +
$247 + 0.08% of principal
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education