Question

What is the rate of return when 10 shares of Stock
A, purchased for 20 $/share, are sold for $310? The
commission on the sale is $6.
rate of return = [?] %
Give your answer as a percent rounded to the
nearest tenth.

Answer 1

Answer:

Rate of return = 52%

Step-by-step explanation:

Cost of Investment = 10 shares × $20 = $200

Gain on Investment = amount sold - commission on the sale

Gain on Investment = $310 - $6 = $304

Using the formula:

ROR = (Gain on investment - cost of Investment)/cost of Investment × 100

Plug in the values into the formula:

$ROR = \frac{304 - 200}{200} * 100$

$= \frac{104}{200} * 100$

$= \frac{104*100}{200}$

$= \frac{104}{2} = 52$

Rate of return = 52%