Lucia bought 800 shares of a company's stock for $7.94/share. she pays a broker a commission of $16 to buy and sell stock. After one year, she sold all her shares, which were worth $8.75 / share at the time.

what was her rate of return?

A. 8.8

B. 9.3

C. 9.7

D. 10.2

Question

Mathematics

Oprah

5 April, 07:56

Lucia bought 800 shares of a company's stock for $7.94/share. she pays a broker a commission of $16 to buy and sell stock. After one year, she sold all her shares, which were worth $8.75 / share at the time.

what was her rate of return?

A. 8.8

B. 9.3

C. 9.7

D. 10.2

+2

Answers (2)

Know the Answer?

Mariyah Turner · Answer 1

Mariyah Turner 5 April, 10:04

0

9.7 is your answer for sure

Kylee Stanley · Answer 2

To find the answer you will divide the amount of money she gained by selling the stock at a higher price by the cost of the stock (including fees paid).

$7.94 x 800 = 6352

6352 + 32 (16 x 2 for buying and selling the stock)

$6384 cost

$8.75 x 800 = $7000 for selling the stock

7000 - 6384 = $616 gain

$616 / $6352 = 0.097 or about 9.7 %

The answer is C.

Lucia bought 800 shares of a company's stock for $7.94/share. she pays a broker a commission of $16 to buy and sell stock. After one year, she sold all her shares, which were worth $8.75 / share at the time.what was her rate of return?A. 8.8B. 9.3C. 9.7D. 10.2

Lucia bought 800 shares of a company's stock for $7.94/share. she pays a broker a commission of $16 to buy and sell stock. After one year, she sold all her shares, which were worth $8.75 / share at the time.

what was her rate of return?

A. 8.8

B. 9.3

C. 9.7

D. 10.2