Phil bought 700 shares of a company’s stock for $9.29/share. he pays a broker a commission of $18 to buy and sell stock. after one year, he sold all his shares, which were worth $9.90/share at that time. what was his rate of return

The rate of return is 6.5% .

Step-by-step explanation:

As given

Phil bought 700 shares of a company’s stock for $9.29/share.

He pays a broker a commission of $18 to buy and sell stock.

After one year, he sold all his shares, which were worth $9.90/share at that time.

Cost price of the 700 shares of a company = 700 × Cost per share + Commission cost .

Cost price of the 700 shares of a company = 700 × 9.29 + 18

                                                                        = 6503 + 18

                                                                        = $ 6521

Selling st price of the 700 shares of a company = 700 × Cost per share + Commission cost .

Selling st price of the 700 shares of a company = 700 × 9.90 + 18

                                                                                  = 6930 + 18

                                                                                  = $ 6948

Put all the values in the above

Rate of return = 6.5%

Therefore the rate of return is 6.5% .

the correct answer is $7.38

step-by-step explanation: