1. You invested $2,300 in stock. Your account now has a value of $2,643. Your percentage gain on the investment (rounded to the nearest percent) was: a)0% b)5% c)10% d)15%
2. The current highest interest rate on a savings account is 1.85%. the current rate of inflation is 1.9%. what is the real dollar return on this account with a $1,020 balance at the end of the year a)$ -.51 b)$-.05 c)$.005 d)$.05
3. Your savings account pays 1.75% interest per year. You make a $500 deposit. How much interest does the account earn in the first month? a)$.14 b)$.17 c)$.50 d)$.73
4. You bought stocks in 2 different companies yesterday: 100 shares of stock "a" was purchased at $21.15 per share and gained 6% today; 50 shares of stock "b" was purchased at $14.23 per share and lost 1.5% today. What is your percentage gain or loss on your 2 stock portfolio? a)-1.2% b)2.7% c)4.1% d)5.8%
5. You invested $1,200 in a mutual fund. Your account now has a value of $1,333. Your gain was: a)$133 b)$233 C)$1,200 d)$1,333
6. You invest $1,000 in a fund. You check your statement at the end of April and you have lost 13%. When the statement for May comes, you see you have gained 13% in May. What is the value of your account? Round to the nearest dollar. a)$850 b)$917 c)$983 d)$1,057
7. You purchased 100 shares of stock valued at $55 per share. The stock value increases to $85 per share. What was the rate of increase? a)48% b)55% c)64% d)85%
8. You've had your money in a high yield Money Market account, earning 6.5% for one year. The rate of inflation was 5%. What is your true or real rate of return? a)-1.5% b)1.5% c)6.5% d)11.5%
9. You purchased 100 shares of Granny Smith stock one year ago. You purchased your stock at $157.21 per share. You earned $232 in dividends this year. If you sold your all your shares today at the current market value of $217.58 per share, what would you rate of return be for the year? Calculate the Annual Rate of Return using the formula given to you in the reading assignment. a)15% b)21% c)40% d)62%