A Share of Canadian Tire Stock Is Purchased by an Individual

question 4

Multiple Choice

A share of Canadian Tire stock is purchased by an individual investor for $75 and later sold to another investor for $125.Who profits from this sale?

• A)Canadian Tire
• B)the first investor
• C)the second investor
• D)Canadian Tire and both investors

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Definitions:

Compounded Monthly

Interest calculated on the principal and previously earned interest every month.

Future Value

Future value is the value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Compounded Monthly

Interest calculation where interest is added to the principal balance each month, leading to an increase in the total interest earned over time.

Ordinary Annuity

A sequence of identical payments made consistently during a defined timeframe.