The Russell Index tracks the average performance of various groups of stocks. Figure 3 shows that, on average, a $10,000 investment in midcap growth funds over a 10-year period would have grown to $63,000. What annual nominal rate would produce the same growth if interest were

(A) Compounded annually? 

(B) Compounded continuously?

Express answers as percentages, rounded to three decimal places.

Figure 3

Transcribed Image Text:

$140,000 120,000 100,000 80,000 60,000 40,000 20,000 $10,000 Mutual Fund Figure 3 Growth of a $10,000 investment Russell Index 0 1 2 3 4 5 6 7 8 9 Years $126,000 $63,000 10