Jeff Sellers bought 200 shares of Radio Shack stock at

$22.35. Eight months later, he sold the stock at $31.76.

Assuming a 2% commission charge, what is the bottom

line for Jeff?

Oh snap Ray!

Assuming 2% is charged on the buy AND the sell...

Jeff's cost with commission: (200 * 22.35) * 1.02 = 4,559.40

Proceeds on sale after commission: (200 * 31.76) * (1 - 0.02) = 6,224.96

"bottom line": 6,224.96 - 4559.50 = $1,665.56 net profit

which is...

1665.56 / 4559.40 = 0.3653, or 36.53% return over the 8 month investment time horizon

Wait there I'll ask my 4 year old daughter to work it out for you.

Jeff Sellers bought 200 shares of Radio Shack stock at

$22.35. Eight months later, he sold the stock at $31.76.

Assuming a 2% commission charge, what is the bottom

line for Jeff?