
You chose the correct answer.
Here is the calculation:
The profit from selling the fund is
$200($70 - $50) = $4,000
The fees charged by Fidelity are
Buying: 200 ($50) (0.01) = $100
Selling: 200 ($70) (0,015) = $210
The net profit from the investment is
$4,000 - $100 - $210 = $3,690
The rate of return on the investment is
$3,690/$10,000 = 0.369 or about 36.9%
Click to move on to College Fund Calculator.
|