Question

Kyle buys $30,000 of company XYZ's shares, at a share price of $50. A year later, XYZ's share price is $55, and Kyle sells all his shares. How many dollars did Kyle's investment gain

Answer 1

Answer:

$3,000

Step-by-step explanation:

Given that the shares are $50 per share and that Kyle buys $30,000 worth of shares,

Number of shares bought = total price of shares ÷ price per share

= $30,000 ÷ $50

= 600 shares

We are also give that a year later, the shares are worth $55

Total value of shares 1 year later = Price per share one year later x number of shares

= $55 x 600

= $33,000

Hence the investment gained $33,000 - $30,000 = $3,000

Answer 2

Answer:

10%

Step-by-step explanation:

x - amount of shares bought

x * 50[$] = 30000[$]

x = 30000/50 = 600

if he bought 600 shares then he sold earning in total:

600 * 55[$] = 33000[$]

that means investmant gain can be calculate as:

return on investment =  (gain from investment – cost of investment) / cost of investment

return on investment = (33000 - 30000) / 30000 = 3000/30000 =0.1 = 10%