Question

What is the rate of return when 20 shares of
Stock A, purchased for $20/share, are sold for
$490? The commission on the sale is $6.
Rate of Return [?]%
=
Enter your answer as a percent rounded to the nearest tenth.
Submit

Answer 1

Answer:

121.0%

Explanation:

The total amount received from the sale is $490 - $6 = $484.

The total investment is $20/share * 20 shares = $400.

The rate of return is $484/$400 = 121%.

The rate of return is 121% rounded to the nearest tenth is 121.0%