Question

Jeff owns 350 shares of FroYo Love, a frozen yogurt company, which he purchased at $7.96 a share. Two years later he sells the stock for $4.24 a share. What was the total loss on the stock?
-$2,706
-$2,796
-$2,786
-$1,302

Answer 1

To calculate the total loss on Jeff's stock, we need to determine the total amount he invested in the shares and the total amount he received from selling them.

1. **Total investment**:
- Number of shares: 350
- Purchase price per share: $7.96
- Total investment = Number of shares × Purchase price per share
\[
\text{Total Investment} = 350 \times 7.96 = 2,786
\]

2. **Total sale amount**:
- Sale price per share: $4.24
- Total sale amount = Number of shares × Sale price per share
\[
\text{Total Sale Amount} = 350 \times 4.24 = 1,484
\]

3. **Total loss**:
- Total loss = Total investment - Total sale amount
\[
\text{Total Loss} = 2,786 - 1,484 = 1,302
\]

Thus, the total loss on the stock is **-$1,302**.

So the correct answer is **-$1,302**.