For four years, Mary Nations invested $2,850 each year in America Bank stock. Th
ID: 2788693 • Letter: F
Question
For four years, Mary Nations invested $2,850 each year in America Bank stock. The stock was selling for $37 in 2013, for $48 in 2014, for $44 in 2015, and for $55 in 2016 (a) What is Mary's total investment in America Bank? Total investment (b) After four years, how many shares does Mary own? (Round your intermediate calculations and final answer to 1 decimal place.) Total shares (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 shareExplanation / Answer
a.
Total investment = Annual investment × Number of years
= $2,850 × 4
= $11,400 (Answer)
b.
Number of share in each year should be calculated by dividing the annual investment to selling price of that year.
Year 2013 = $2,850 / $37 = 77.0
Year 2014 = $2,850 / $48 = 59.4
Year 2015 = $2,850 / $44 = 64.8
Year 2016 = $2,850 / $55 = 51.8
Total share is the aggregate of above.
Total share = 77.0 + 59.4 + 64.8 + 51.8 = 253 (Answer)
c.
Average cost is the aggregate of all per-share prices by dividing the number of years.
Average cost = (37 + 48 + 44 + 55) / 4 = $184 / 4 = $46 (Answer)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.