Assume Joe Invests a Total of $10,000 in a Company

question 157

Multiple Choice

Assume Joe invests a total of $10,000 in a company - $5,000 of which is his own money and $5,000 which he borrowed at a 10% interest rate.If the company's stock value increases by 20% in one year at which time Joe sells his shares of the stock, what is Joe's rate of return on his investment?

• A)10% 
• B)15% 
• C)20% 
• D)30%

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Definitions:

Benefits Payment

refers to the disbursement of funds from government or insurance programs to individuals who qualify for various types of financial assistance, such as unemployment, disability, or health insurance.

Valid Delegation

The legal principle that allows a person to transfer their duties to another party, provided the action is authorized and the delegate is qualified.

Expressed Intent

The explicitly stated purpose or goal of an individual or entity, made clear through verbal or written communication.

Intended Third-party

Someone who, although not a direct participant in a contract or agreement, stands to benefit from the execution of the agreement.