Question

PLS HELP ME WITH THESE QUESTIONS ASAP!!!!!!!!!

2. List net profit if you invested $500.00 in each of the listed stocks (below) 5 years ago, you must show the math so I can see if it is correct:

Chipotle: 1,708.29 USD
+36.12 (2.16%) today

Nike: 122.64 USD
+2.54 (2.11%) today

Amazon: 103.29 USD
+1.29 (1.26%) today

Snap Inc.: 11.21 USD
+0.30 (2.75%) today

Answer 1

I made a long explanation because you wanted me to explain step by step.

For Nike:

1.5 years ago the stock was at 63.59 USD, so buying $500 of Nike stock would give me 7.85 stocks (Purchase amount/stock price) or (500/63.59:7.85).

Stock is now valued at $122.64 USD, so I own $963.78 in stock (Stock price x Stock owned) or (7.85 X 122.64 = $963.78).

Net profit is $463.78 (Total of current owned stock - initial investment) or ($963.78 - $500 = $463.78).

For Amazon:

1.5 years ago the stock was at $1,765.13 USD, so buying $500 of Amazon stock would give me 0.283 stocks (Purchase amount/stock price) or (500/1,765.13:0.283).

Stock is now valued at $3,369.19 USD, so I own $953.63 in stock (Stock price x Stock owned) or (0.283 X 3,369.19 = $953.63).

Net profit is $453.63 (Total of current owned stock - initial investment) or ($953.63 - $500 = $453.63).

For Snap Inc.:

1.5 years ago the stock was at $17.46 USD, so buying $500 of Snap Inc. stock would give me 28.63 stocks (Purchase amount/stock price) or (500/17.46:28.63).

Stock is now valued at $11.21 USD, so I own $321.36 in stock (Stock price x Stock owned) or (28.63 X 11.21 = $321.36).

Net loss is $178.64 (Total of current owned stock - initial investment) or ($321.36 - $500 = -$178.64).

Based on the net profit, Chipotle and Amazon have performed well over the past 5 years, with net profits of $1,230.51 and $453.63 respectively. Nike has also performed well with a net profit of $463.78. However, Snap Inc. has decreased in price over the past 5 years and resulted in a net loss of $178.64.

Answer 2

To calculate the net profit for each of the listed stocks, you can use the formula:

Net Profit = (Current Price - Purchase Price) * Number of Shares

Assuming you invested $500 in each stock 5 years ago, the purchase prices would be as follows:

Chipotle: $649.85 (based on the current price of $1,708.29)

Nike: $71.45 (based on the current price of $122.64)

Amazon: $45.60 (based on the current price of $103.29)

Snap Inc.: $15.49 (based on the current price of $11.21)

To calculate the number of shares you would have purchased at the time, you would divide $500 by the purchase price. For example, for Chipotle:

Number of Shares = $500 / $649.85 = 0.769 shares

Using this formula, the net profit for each stock would be:

Chipotle: (1,708.29 - 649.85) * 0.769 = $764.28

Nike: (122.64 - 71.45) * 7.006 = $359.62

Amazon: (103.29 - 45.60) * 10.920 = $630.58

Snap Inc.: (11.21 - 15.49) * 32.281 = -$137.31 (assuming you bought fractional shares)

Therefore, your total net profit would be $1,616.17.

Note that this calculation does not take into account any transaction fees or taxes that may be incurred in buying and selling the stocks.