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 value 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.

Question

Giana Raymond

Mathematics

27 August, 13:22

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 value 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.

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Answers (1)

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Damarion Ramos · Answer 1

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