Question
An investor purchased 800 shares of a stock at $19 per share.The commission she paid to buy the stock was $65 plus 0.3% of the
An investor purchased 800 shares of a stock at $19 per share.The commission she paid to buy the stock was $65 plus 0.3% of the principal amount. Nine months later she sold the stock for $22 per share.If she paid the same rate of commission to sell the stock, what annual rate of interest did she earn on her initial investment(including purchase price and commission)? Answer each question below.Think about (t) in simple interest.
Round answer to nearest cent and do not enter commas for larger numbers.
A) Including commission, how much did she invest in the purchase of the stocks?$(Do not enter $ sign in answer - it's already entered.)
B) Considering commission, how much did she receive from the sale of the stocks?$(Do not enter $ sign in answer - it's already entered.)
C) How much profit (interest) did she receive from the sale of the stocks?$(Do not enter $ sign in answer - it's already entered.)
D) What simple interest rate of return (to nearest tenth of a %) did she earn on the sale of the stocks?%(Do not enter % sign in answer - it's already entered.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started