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Part 1
Compute the total and annual returns on the described investment.
Five years after buying 100 shares of XYZ stock for ​$70 per​ share, you sell the stock for $ 9800.
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Part 1
The total return is

enter your response here​%.
​(Do not round until the final answer. Then round to one decimal place as​ needed.)

To compute the **total return** on the investment, we use the formula:

\[
\text{Total Return} = \frac{\text{Ending Value} - \text{Beginning Value}}{\text{Beginning Value}} \times 100
\]

### Step 1: Find the beginning and ending values.
- **Beginning Value**: The initial purchase cost is 100 shares at $70 per share.
  \[
  \text{Beginning Value} = 100 \times 70 = 7000
  \]
- **Ending Value**: You sell the stock for $9,800.

### Step 2: Compute the total return.
\[
\text{Total Return} = \frac{9800 - 7000}{7000} \times 100 = \frac{2800}{7000} \times 100 = 40\%
\]

So, the total return is **40%**.

Do you want more details or have any questions?

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Here are 5 related questions:
1. How would the total return change if the selling price was $10,000 instead of $9,800?
2. How do you calculate the annualized return from the total return?
3. What is the significance of the total return in investment analysis?
4. How would dividends affect the total return calculation?
5. What is the difference between simple return and compound return?

**Tip**: Always consider including transaction costs like brokerage fees when calculating actual returns on investments.

Five years after buying 100 shares of XYZ stock for $70 per share, you sell the stock for $9800. Compute the total and annual returns on the described investment. The total return is ___%. (Do not round until the final answer. Then round to one decimal place as needed.)

Learn how to calculate the total and annual returns on an investment. This problem involves purchasing 100 shares of XYZ stock at $70 per share and selling them for $9,800. The total return is computed as 40%, using a key percentage calculation formula. Suitable for Grades 10-12.

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