Question

OnMar15,ifEIFcosts$37/share...
a. How many new shares did your contribution buy?

Answer 1

On March 15th, with a $200 monthly investment and EIF shares priced at $37 each, you would purchase approximately 5.41 shares. Practically, you would likely buy 5 shares due to fractional limitations.

To calculate the number of shares you can buy with your monthly contribution, you can use the formula:

`\[ \text{Number of shares} = \frac{\text{Monthly contribution}}{\text{Share price}} \]`

In this case, the monthly contribution is $200, and the share price on March 15th is $37.

`\[ \text{Number of shares} = (200)/(37) \]`

Let's calculate:

`\[ \text{Number of shares} \approx 5.41 \]`

So, with your $200 monthly contribution, you would be able to buy approximately 5.41 shares of EIF on March 15th. Since you can't buy a fraction of a share in most cases, you would typically buy 5 shares with your $200 contribution.

The complete question is:

You’ve decided to invest $200 per month, your account is set to automatically buy $200 worth of shares on or near the 15th of every month, on Mar 15th if EIF costs $37/share, how many new shares did your contribution buy?