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

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.

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jahkinbgenius jahkinbgenius · Answer 2 · 2018-04-04T21:08:33+02:00

jahkinbgenius jahkinbgenius

04-04-2018

9.7 is your answer for sure

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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

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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