BUSN 380 STUDY Career Path Begins/busn380study.com BUSN 380 STUDY Career Path Begins/busn380study.com | Page 61

a discussion and explanation of how this dream job will or will not
help you achieve your personal goals based on the outcome of your
budget. 50 Points Total
Based on the personal budget I prepared, assuming an annual salary
of $55,000, I could pay off my own apartment, everyday needs (food,
clothing and transportation to and from work), and still have extras
for entertainment. What is amusing is, despite allocating a decent
amount for savings and retirement, and payment of my student loan, I
could still have…
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BUSN 380 Week 4 Problem Set 4

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1. Determining Profit or Loss from an Investment. Three years ago,
you purchased 150 shares of IBM stock for $88 a share. Today, you
sold your IBM stock for $103 a share.
For this problem, ignore commissions that would be charged to buy
and sell your IBM shares.
a. What is the amount of profit you earned on each share of IBM
stock?
b. What is the total amount of profit for your IBM investment?
2. Calculating Rate of Return. Assume that at the beginning of the
year, you purchase an investment for $8,000 that pays $100 annual
income. Also assume the investment’s value has decreased to $7,400
by the end of the year.