40pts and a brainliest to the person who can help me with this stock problem. PLEASE show all steps in detail so I can learn how

Question

2 years ago

7

40pts and a brainliest to the person who can help me with this stock problem. PLEASE show all steps in detail so I can learn how

to do this!
What is the rate of return when 20 shares of Stock A, purchased for $30/share, are sold for $710? The commission on the sale is $6. Give your answer as a percent rounded to the nearest tenth.

Mathematics

1 answer:

ruslelena [56] · Answer 1 · 2022-12-26T16:54:58+03:00

Answer:

Rate of Return is 14.8%

Step-by-step explanation:

We know that 20 shares of Stock are purchased for $30 per share.

This gives us a total value of: 20 × 30 = $600.

Now, the shares are sold for $710 with a commission sale of $6. This means the final money going to the seller is; 710 – 6 = $704.

Thus, the rate of return percentage is = (704 – 600)/704) × 100% = 14.7727%

To the nearest tenth gives us 14.8%