Question

Round all answers to the nearest tenth.

Tim Jones needs help in making an investment decision. He has created the following table.

Purchase Price
100 shares Commission Total Cost Sales Price Commission Cash to Tim =
Sales Price - Commission Cash to Tim ÷ Total Cost (nearest tenth)
ABC = $525 0 $525 $787 0 $787 150%
DEF = $600 $275 $875 $900 $100 $800 %
1. If Tim does not buy DEF, how much can he spend on ABC?

2. How many shares of ABC can he buy if he does not buy DEF?

3. If the selling price is $1,750, how much will Tim have earned by investing?

4. What is the total return divided by the total cost in this example?