Jack had an investment return of -24.0% on a share that he bought for $100 one year ago.For how much did Jack sell the share assuming he received a dividend of $1.75 during the year?

Question

Quizplus · Accepted Answer

To calculate the selling price, we need to take into account the investment return and dividend received.

Investment return of -24.0% means that Jack's share is now worth 76% of its original value:

$100 x (1 - 0.24) = $76

Adding the dividend of $1.75:

$76 + $1.75 = $77.75

Therefore, Jack sold the share for $77.75, which corresponds to choice B.

Jack Had an Investment Return of -24