Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

For four years, Mary Nations invested $6,600 each year in America Bank stock. Th

ID: 2760308 • Letter: F

Question

For four years, Mary Nations invested $6,600 each year in America Bank stock. The stock was selling for $43 in 2010, for $49 in 2011, $41 in 2012, and for $61 in 2013.

What is Mary’s total investment in America Bank?

After four years, how many shares does Mary own? (Round your intermediate calculations and final answer to 1 decimal place.)

What is the average cost per share of Mary’s investment? (Round your intermediate calculations and final answer to 1 decimal place.)

For four years, Mary Nations invested $6,600 each year in America Bank stock. The stock was selling for $43 in 2010, for $49 in 2011, $41 in 2012, and for $61 in 2013.

Explanation / Answer

A) Total investment = $6,600*4years

                                 = $26400

    B) No of shares Mary own:

Year

Investment

Stock price

No of stock

1

6600

43

153.49

2

6600

49

134.69

3

6600

41

160.98

4

6600

61

108.20

Total

26400

557.35

= Total investment / No of stock

= 26400/557.35

= $47.37 Price per stock

Year

Investment

Stock price

No of stock

1

6600

43

153.49

2

6600

49

134.69

3

6600

41

160.98

4

6600

61

108.20

Total

26400

557.35