You purchased the stock of Sargent Motors at a price of $75.75 one year ago today. If you sell the stock today for $89.00, what is your rate of return?
A) 35.00%
B) 12.50%
C) 17.50%
D) 25.00%

Question

Quizplus · Accepted Answer

Rate of return = (selling price - purchase price)/purchase price x 100%

= ($89.00 - $75.75)/$75.75 x 100%

= $13.25/$75.75 x 100%

= 0.175 x 100%

= 17.50%

Therefore, the rate of return is 17.50%, which is option C.

You Purchased the Stock of Sargent Motors at a Price