Question
Prema purchased 27 ounces of gold in 2005 for $464 per ounce in order to try to diversify her investment portfolio. She sold a third
Prema purchased 27 ounces of gold in 2005 for $464 per ounce in order to try to diversify her investment portfolio. She sold a third of her holdings in gold in 2009 at a price $897 per ounce. She sold the rest of her gold holdings in 2010 for $1,191 per ounce. What is Premas profit in 2009 and 2010?
A) Premas profit in 2009 was $1,980. Premas profit in 2010 was $7,400.
B) Premas profit in 2009 was $3,234. Premas profit in 2010 was $11,436.
C) Premas profit in 2009 was $3,897. Premas profit in 2010 was $13,086.
D) Premas profit in 2009 was $5,220. Premas profit in 2010 was $14,380.
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