Question

you buy 100 shares of a company's stock at $ 9.75/ share and place the same amount in a savings account earning a 4.5 % APR. the stock gains 8% in the first year . what is the difference in total value between your stocks and savings account by the end of the first year ?

Answer 1

100×9.75=975
Difference
975×(1+0.08)−975×(1+0.045)=34.125