Assume That Michaela Purchases $12,000 Worth of a Stock

question 23

Multiple Choice

Assume that Michaela purchases $12,000 worth of a stock.To do so she uses $2,000 of her own money and borrows the remaining $10,000 at an 8.0% interest rate.If the stock's value increases by 20% in one year and she sells the stock at that time, what is her rate of return?

• A)13% 
• B)16% 
• C)20% 
• D)80%

---

Definitions:

Lucrative Return

Refers to a significant profit or financial gain from an investment or venture, often exceeding the original amount invested.

Afro-Christians

Individuals of African descent who adhere to Christianity.

Evangelical Christians

A group within Christianity emphasizing the authority of the Bible, the need for personal conversion, and the importance of sharing the Christian faith.

Day of Jubilee

Historically, the celebration of emancipation from slavery, especially in the context of the American South.