For four years, Mary Nations invested $3,500 each year in America Bank stock. Th
ID: 2772100 • Letter: F
Question
For four years, Mary Nations invested $3,500 each year in America Bank stock. The stock was selling for $38 in 2010, for $48 in 2011, $38 in 2012, and for $55 in 2013.
What is Mary’s total investment in America Bank?
After four years, how many shares does Mary own? (Round your intermediate calculations and final answer to 1 decimal place.)
What is the average cost per share of Mary’s investment? (Round your intermediate calculations and final answer to 1 decimal place.)
(a)What is Mary’s total investment in America Bank?
Explanation / Answer
For four years, Mary Nations invested $3,500 each year in America Bank stock. The stock was selling for $38 in 2010, for $48 in 2011, $38 in 2012, and for $55 in 2013.
(a)What is Mary’s total investment in America Bank?
Total investment = 3500*4
Total investment = $ 14,000
(b)After four years, how many shares does Mary own? (Round your intermediate calculations and final answer to 1 decimal place.)
Total shares = 3500/38 + 3500/48 + 3500/38 + 3500/55
Total shares = 92.1 + 72.9 +92.1 + 63.6
Total shares = 320.7
(c)What is the average cost per share of Mary’s investment? (Round your intermediate calculations and final answer to 1 decimal place.)
Average cost per share = Total investment / Total shares
Average cost per share = 14000/320.7
Average cost per share = $ 43.7
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