1 answer
(click or scroll down)
To find the rate of return on Angela's investment, we need to calculate the total cost and the total selling price of the shares.
Step 1: Calculate the total cost of the shares:
Angela purchased 100 shares at a price of $33 per share.
Total cost = Number of shares * Price per share
Total cost = 100 * $33 = $3300
Step 2: Calculate the total selling price of the shares:
Angela sold 100 shares at a price of $36 per share.
Total selling price = Number of shares * Selling price per share
Total selling price = 100 * $36 = $3600
Step 3: Calculate the profit made from the investment:
Profit = Total selling price - Total cost
Profit = $3600 - $3300 = $300
Step 4: Calculate the rate of return:
Rate of return = (Profit / Total cost) * 100
Rate of return = ($300 / $3300) * 100 = 9.09%
Therefore, Angela earned a rate of return of 9.09% on this investment.