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Close Wind Moving to the next question prevents changes to this answer Question 2 of estion 2 points Save Ansa 100 shares of his favorite stocks for $24 50 per share exactly one year ago He sold them for $2865 today He plans to invest the full amo stock but must pay $75 commission fee If John plans to sell the new stock one year fro year? Include the commission fee as part of the purchase price but neglect any tax effects what must be the total amount he receives next Moving to the next question prevents changes to this answer Close Wid Type here to search DOLL 6 7 8

Explanation / Answer

3.

Initial value of investment = 100*24.5 = $2450

Value realized after 1 year = $2865

Return upon the investment = (2865-2450)/2450 = 16.94%

Total investment in the different stock = 2865 + 75 = $2940

Hence,

The value of stock after one year = 2940*(1+16.94%)

The value of stock after one year = $3438.04

So, $3438.04 should be received after 1 year from the different stock to get the equal return from the earlier investment.

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