An Investor Buys a Stock for $1,200 at the Beginning

question 7

Multiple Choice

An investor buys a stock for $1,200 at the beginning of a year.The stock pays him a dividend of $150 over the year, and the worth of the stock appreciates by $300 at the end of the year.If the annual rate of inflation is 6%, what is the loss in principal value due to inflation?

• A)$18
• B)$27
• C)$72
• D)$247.5

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Definitions:

Taste Buds

Small sensory organs located on the tongue, capable of detecting the five types of taste: sweetness, sourness, saltiness, bitterness, and umami.

Body Temperature

The measure of the body's heat, indicating the balance between the heat produced and lost by the body, critical for normal function.

Cerumen

The technical term for earwax, a substance produced in the ear canal that protects against bacteria and other potential damage.

Sensory Overload

A state in which one or several of the body's senses are excessively stimulated by environmental factors.