Given:
The rate of return when 25 shares of Stock
A. purchased for $30/share, are sold for $825. The commission on the sale is $6.
Required:
What is the rate of return?
Explanation:
First step is to find the shares of stock price:
Shares of stock price=25 shares×$30/share
Shares of stock price= $750
Second step is to calculate the total sold price:
Total sold price= $825+$6
Total sold price= $831
Third step is to calculate the Rate of return:
[tex]\begin{gathered} \text{ Rate if return }=\frac{831-750}{750}\times100 \\ \text{ Rate if return }=\frac{81}{750}\times100 \\ \text{ Rate of return }=10.8\% \end{gathered}[/tex]Answer:
Rate of return is 10.8%
