Original Cost of Investment Selling Price of Investment Distributions Investment Received Dollar Profit/(Loss) CD $800 $860 $0 ? Stock $23 $16 $4 ? Bond $930 $1,030 $110 ? Car $37,000 $18,000 $0 ?
Original Cost of Investment Selling Price of Investment Distributions Investment Received Dollar Profit/(Loss) CD $800 $860 $0 ? Stock $23 $16 $4 ? Bond $930 $1,030 $110 ? Car $37,000 $18,000 $0 ?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:**Profits.** What are the profits on the following investments? Enter a negative number for a loss.
Table:
| **Investment** | **Original Cost of Investment** | **Selling Price of Investment** | **Distributions Received** | **Dollar Profit/(Loss)** |
|----------------|--------------------------------|--------------------------------|----------------------------|--------------------------|
| CD | $800 | $860 | $0 | $ \_\_\_ (Round to the nearest dollar.) |
**Description:**
This table lists the details of an investment in a CD (Certificate of Deposit). The original cost of the investment was $800, while the selling price was $860. No distributions were received from this investment. To calculate the profit or loss, subtract the original cost from the selling price and add any distributions received. Fill in the result in the "Dollar Profit/(Loss)" box, rounded to the nearest dollar.
![### Investment Analysis Table
This table presents a simplified analysis of various investments, including a CD, stock, bond, and car. For each investment, the original cost, the selling price, any distributions received, and the profit or loss in dollar terms are provided. The table is structured as follows:
#### Columns:
1. **Investment**: Type of investment.
2. **Original Cost of Investment**: Initial amount paid for the investment.
3. **Selling Price of Investment**: The amount for which the investment was sold.
4. **Distributions Received**: Additional income received from the investment, such as dividends.
5. **Dollar Profit/(Loss)**: The net gain or loss from the investment.
#### Rows and Values:
- **CD**
- Original Cost: $800
- Selling Price: $860
- Distributions: $0
- Profit/(Loss): To be calculated
- **Stock**
- Original Cost: $23
- Selling Price: $16
- Distributions: $4
- Profit/(Loss): To be calculated
- **Bond**
- Original Cost: $930
- Selling Price: $1,030
- Distributions: $110
- Profit/(Loss): To be calculated
- **Car**
- Original Cost: $37,000
- Selling Price: $18,000
- Distributions: $0
- Profit/(Loss): To be calculated
#### Calculation of Dollar Profit/(Loss):
To calculate the dollar profit or loss, use the formula:
\[ \text{Dollar Profit/(Loss)} = (\text{Selling Price} + \text{Distributions Received}) - \text{Original Cost} \]
This table can serve as a practical example when teaching basic investment concepts such as initial cost, revenue from sales, additional earnings from distributions, and calculating profits or losses.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F353eec08-b3f3-4175-a026-2d0234ecbc5b%2F1aa5fade-ed1a-49d1-850e-34f5de77655f%2Fcn2n1lm_processed.png&w=3840&q=75)
Transcribed Image Text:### Investment Analysis Table
This table presents a simplified analysis of various investments, including a CD, stock, bond, and car. For each investment, the original cost, the selling price, any distributions received, and the profit or loss in dollar terms are provided. The table is structured as follows:
#### Columns:
1. **Investment**: Type of investment.
2. **Original Cost of Investment**: Initial amount paid for the investment.
3. **Selling Price of Investment**: The amount for which the investment was sold.
4. **Distributions Received**: Additional income received from the investment, such as dividends.
5. **Dollar Profit/(Loss)**: The net gain or loss from the investment.
#### Rows and Values:
- **CD**
- Original Cost: $800
- Selling Price: $860
- Distributions: $0
- Profit/(Loss): To be calculated
- **Stock**
- Original Cost: $23
- Selling Price: $16
- Distributions: $4
- Profit/(Loss): To be calculated
- **Bond**
- Original Cost: $930
- Selling Price: $1,030
- Distributions: $110
- Profit/(Loss): To be calculated
- **Car**
- Original Cost: $37,000
- Selling Price: $18,000
- Distributions: $0
- Profit/(Loss): To be calculated
#### Calculation of Dollar Profit/(Loss):
To calculate the dollar profit or loss, use the formula:
\[ \text{Dollar Profit/(Loss)} = (\text{Selling Price} + \text{Distributions Received}) - \text{Original Cost} \]
This table can serve as a practical example when teaching basic investment concepts such as initial cost, revenue from sales, additional earnings from distributions, and calculating profits or losses.
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