Question

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? Round the final answer to the nearest hundredth.

Answer 1

Answer: 9.4%

Step-by-step explanation:

From the question,

Investment, Po = 20000

The formula to use will be:

P = Po × e^rt

where r = rate

t = time

Check the attachment for further details and explanation.