malakabdulah3289 malakabdulah3289
  • 21-08-2020
  • Business
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You sell a stock for $50.00 that was held for 10 years. You earned a return of 8%. What was the original cost of the stock?

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Tundexi
Tundexi Tundexi
  • 23-08-2020

Answer:

Original cost of the stock = $23.16

Explanation:

Original cost of the stock = Selling price of stock / ( 1 + r )^n

Original cost of the stock = $50 / (1+8%)^10

Original cost of the stock = $50 / (1.08)^10

Original cost of the stock = $23.16

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