Question

What is the rate of return when 35 shares of Stock A, purchased for $20/share, are sold for $815? The commission on the sale is $6. Rate of Return = [?] % Give your answer as a percent rounded to the nearest tenth​

Answer 1

Cost price:-

$\\ \sf\longmapsto 35\times 20$

$\\ \sf\longmapsto 700$

• Commision=$6
• Total sold price=815+6=823$

Now

Return=823-700=123

Rate of return

$\\ \sf\longmapsto \dfrac{123}{700}\times 100$

$\\ \sf\longmapsto \dfrac{123}{7}$

$\\ \sf\longmapsto 17.5\%$

Answer 2

35 × 20

= 700

823 - 700

= 123

123/700 × 100

= 12300/700

= 123/7

= 17,5%