Return or Loss
Directions:
Calculate your return or loss for each of the examples below. Once those
calculations are complete, calculate your overall return or loss for all investments
combined:
Calculating Dividends:
In December of this year, you will be paid $0.08 per share you own of ABC stock.
You own 2,500 shares and you do not plan on selling these shares at this time. How
much will you earn in dividends on this investment?
S
T
U
D
E
N
T
A
C
T
I
V
I
T
Y
Calculating Interest:
On October 1, you invested $1,000 into a money market fund which pays an APR
(annual percentage rate) of two percent. The interest will be paid to you quarterly
(four times each year). How much will you be paid in interest on this investment in
the first quarter?
Calculating Discount Rates:
On January 1, you purchased a savings bond with a face value of $1,000 and a
discount rate of 15 percent. You will sell the bond in December for the face value of
$1,000. How much will you earn on this investment?
Calculating Growth:
You purchased 100 shares of XYZ stock for $8 per share in January. In December,
you sell it for $7 per share. How much will you earn or lose on this investment?
Total return on all above investments:
Accompanies: Financial Literacy: Investing
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