Suppose you bought XYZ stock 1 year ago for ​$6.44 per share and sell it at ​$8.49. You also pay a commission of ​$0.35 per share on your sale. What is the total return on your​ investment?
The total return is ____ %. (Round to the nearest tenth as​ needed.)

To calculate the total return on your investment, we can follow these steps:

1. **Initial purchase price:** \$6.44 per share.
2. **Selling price:** \$8.49 per share.
3. **Commission paid on the sale:** \$0.35 per share.

The effective selling price after the commission is:
\[
\text{Effective Selling Price} = 8.49 - 0.35 = 8.14 \, \text{per share}.
\]

Now, the return per share is:
\[
\text{Return per share} = \text{Effective Selling Price} - \text{Initial Price} = 8.14 - 6.44 = 1.70 \, \text{per share}.
\]

Finally, to calculate the total return as a percentage:
\[
\text{Total Return} = \left( \frac{\text{Return per share}}{\text{Initial Price}} \right) \times 100 = \left( \frac{1.70}{6.44} \right) \times 100.
\]

Now, let me calculate the exact percentage.

The total return on your investment is **26.4%**.

Would you like more details or have any other questions?

Here are 5 related questions you might find helpful:
1. How does the commission affect the overall return on investment?
2. What would the return be if the commission was higher, say \$0.50 per share?
3. How would the return change if the stock had been sold at \$7.50 instead?
4. What is the formula for calculating return on investment (ROI) in different contexts?
5. How can you compare this stock return to other investments?

**Tip:** When calculating investment returns, always account for transaction costs like commissions, as they can significantly impact your net profit.

Suppose you bought XYZ stock 1 year ago for ​$6.44 per share and sell it at ​$8.49. You also pay a commission of ​$0.35 per share on your sale. What is the total return on your​ investment? The total return is ____ %. (Round to the nearest tenth as​ needed.)

Learn how to calculate the total return on investment for stock XYZ. This step-by-step solution involves subtracting a commission from the selling price, finding the return per share, and calculating the percentage return. Suitable for high school students in Grades 9-12.

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