carryonf
May 1, 2011, 02:52 PM
Compare the two investments, which would be the better choice?
Investment 1: $10,000 was invested in a 24-month CD that earned 5.1% annual interest compounded daily.
Investment 2: 1,400 shares of stock in the Lybarger Aviation Company were bought at $7.11 per share using a brokerage with a 0.75% commission rate on both buying and selling stock. Over the 2 years the stock was held, it paid a dividend of $0.48 per share in the first year and $0.36 per share in the second year. The stock was sold throughout the same brokerage for $7.95 per share.
Investment 1: $10,000 was invested in a 24-month CD that earned 5.1% annual interest compounded daily.
Investment 2: 1,400 shares of stock in the Lybarger Aviation Company were bought at $7.11 per share using a brokerage with a 0.75% commission rate on both buying and selling stock. Over the 2 years the stock was held, it paid a dividend of $0.48 per share in the first year and $0.36 per share in the second year. The stock was sold throughout the same brokerage for $7.95 per share.