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I cant understand the unintelligent, foolish explanation given to this question bellow , can you provide better explanation and with fix formulas if needed to
I cant understand the unintelligent, foolish explanation given to this question bellow , can you provide better explanation and with fix formulas if needed to tackle questions like these and questions similar to this. do not explain the same way its done below , indiscreet and careless , makes people more demented and disoriented
2. Mr. Feditin is trying to decide which of two products will give him the highest return on an investment of $100,000. One of the investments is a high yield account that pays 1.9% interest per year. The other investment is a stock that pays a dividend of 4% per share and whose initial cost is $40 per share. Assuming the stock price does not change, what would be the difference between two investments after one year? A. Both investments yield the same return B. He would earn $2100 less by investing in the savings account C. He would be ahead $900 by buying the stock D. He would be ahead $2100 by buying the stock E. Two of the above 2. D If he invested in the high yield savings account, his earnings would be 100,000(1.019)=$101,900 after one year. This represents $1,900 profit If he invested in the stock at $40 per share, he could purchase 40100,000=2,500 shares. At 4% per share, his profit would be $400.04=$1.6 per share; for the 2,500 shares, his profit would be 2,5001.6=$4,000 earned from dividends. He therefore gains $4000$1,900=$2100 more from the stockStep by Step Solution
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