2. Sandy made several investments. She bought 1000 shares of a company’s stock for $8.60/share, she bought a bond with a face va
lue of $2500 and a coupon rate of 7%, and she invested $5000 into a fund that is expected to grow by 3.5% per year. (a) Sandy pays a broker a commission of $14 to buy and sell stock. After one year, Sandy sold all her shares, when they were worth $9.15/share. What was her net gain or loss? Show your work.
The stock price per share was $8.60 Number of shares bought 1000 Total price for the shares: (Cost per share)*(Number of shares) =8.60*1000 =$8600
The stock price after 1 year $9.15 Total number of shares is 1000 Current price=(current share price)*(number of shares) 9.15*1000 =$9150 current value=(Current price)-(buying price) =9150-8600 =$550
Net Profit=(Current value)-(Expenses) =550-14 =$536