alexeajohnson
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An investor purchased 50 shares of stock in a company in 2015. At the time the investor purchased the stock, the value of the stock was priced at $5 per share. The investor sold all 50 shares of stock in 2019. The value of the stock at the time of sale was $6.50 per share. What is the capital gain the investor earned on this investment?

$250

$325

$75

$50

Respuesta :

Answer:

$75

Explanation:

$5 to $6.5 is a 1.3% increase and if the investor bought 50 shares of $5 he bought a total of $250 worth of stock. If you multiply the $250 by 1.3% it will be $325. But the question asks for the capital gain so you would subtract $325 and $250 which is $75.

abiolataiwo2015

If the value of the stock at the time of sale was $6.50 per share. The capital gain the investor earned on this investment is $75.

Capital gain

Using this formula

Capital gain=(Number of shares× increase in value of stock)

Let plug in the formula

Capital gain=[50x ($6.50 per shares- $5 per shares)]

Capital gain=50× $1.50 per shares

Capital gain=$75

Therefore the capital gain the investor earned on this investment is $75.

Learn more about capital gain here:https://brainly.com/question/1259480

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