To determine the gain or loss on the investment, follow these steps:
1. Calculate the total initial cost of the investment:
The investor purchased 50 shares for \[tex]$1,750 and paid an additional \$[/tex]8 as a commission. Therefore, the total initial cost is:
[tex]\[
\text{Total Initial Cost} = \text{Cost of shares} + \text{Commission}
\][/tex]
[tex]\[
\text{Total Initial Cost} = \$1750 + \$8 = \$1758
\][/tex]
2. Calculate the total selling price of the shares:
The investor sold 50 shares at \[tex]$29 per share. Thus, the total selling price is:
\[
\text{Total Selling Price} = \text{Number of shares} \times \text{Selling price per share}
\]
\[
\text{Total Selling Price} = 50 \times \$[/tex]29 = \[tex]$1450
\]
3. Determine the gain or loss on the investment:
To find the gain or loss, subtract the total initial cost from the total selling price.
\[
\text{Gain or Loss} = \text{Total Selling Price} - \text{Total Initial Cost}
\]
\[
\text{Gain or Loss} = \$[/tex]1450 - \[tex]$1758 = -\$[/tex]308
\]
Thus, the loss on this investment is [tex]\(\$308\)[/tex].
Answer:
[tex]\[
\text{Gain or Loss} = -\$308
\][/tex]
