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Growing Your Money

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0% found this document useful (0 votes)
21 views3 pages

Growing Your Money

Uploaded by

trinitygroulx
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Growing Your Money

Part One–Research
Imagine you bought 100 shares of stock three years ago and are selling it today. Select a company and
research its stock prices. If you know a company you want to invest in, you can simply Google “stock
price of [name of company].” Otherwise, choose a stock from the list below. Once you decide on a stock,
determine its purchase price three years ago and today's selling price.

Sample Stocks:

● Amazon

● Apple

● Chevron

● Exxon Mobil

● JP Morgan

● Merck

● Meta

● Procter & Gamble

● Tesla

● United Health Group

Part Two–Determine the Real Return


Calculate the real return on your stock investment using the following information:

● Purchase price of 100 shares of stock

● Selling price of 100 shares of stock

● 10% tax rate

● 3% inflation rate

● 2% administrative fee on the selling price of the stock

STEP ONE: Amazon

Company of Choice

Unless Otherwise Noted All Content © 2023 Florida Virtual School. FlexPoint™ is a trademark of Florida
Virtual School.
STEP TWO: 133.96

Stock price/purchase price three years ago

STEP THREE: 209.76

Price Today/selling price

STEP FOUR: 13,396

Purchase price of 100 shares

STEP FIVE: 14,609

Selling price of 100 shares

STEP SIX: 1,213

Profit (Subtract Purchase price from Selling price)

STEP SEVEN: 121.30

Calculate the 10% tax on profit

STEP EIGHT: 1,249.39

Calculate the 3% inflation on profit

STEP NINE: 24.26

Calculate 2% admin fee on selling price

STEP TEN: 1,103.83

Calculate Real Return (Deduct the taxes, inflation,


and fees) from the profit.

Part Three–Evaluate
Analyze your research and calculations, and answer the following questions:

What company did you select to buy stock in? Why did you select the company?

Amazon. Millions of people use Amazon everyday so i thought it must have good stock.

Consider the real return on the stock investment. Do you consider it a wise investment? Why or
why not? Be sure to use your calculations of the real return in your explanation.

Unless Otherwise Noted All Content © 2023 Florida Virtual School. FlexPoint™ is a trademark of Florida
Virtual School.
I think it was a decent investment. Ending up with 1,103.83 in profit is decent, I probably would have
made more if I invested in apple. I think this investment makes since but I think I would leave the
stock for longer.

Unless Otherwise Noted All Content © 2023 Florida Virtual School. FlexPoint™ is a trademark of Florida
Virtual School.

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