SOLUTION: Ken bought 100 shares of a stock for Php50,840.A year later,he sold the stock for Php490.20 a share and paid the broker 1 1/2% commission. Considering that he could have placed the

Question 1148418: Ken bought 100 shares of a stock for Php50,840.A year later,he sold the stock for Php490.20 a share and paid the broker 1 1/2% commission. Considering that he could have placed the Php50,840 in a time deposit that pays 3% interest in a year,was choosing to invest in stocks the better decision?
Found 2 solutions by greenestamps, ikleyn:
Answer by greenestamps(13200) (Show Source): You can put this solution on YOUR website!

Even before the broker's commission, he lost money on the stocks. The time deposit with a 3% interest rate would have made his money grow.

So obviously the stocks was not a better decision.

...Assuming, of course, that his intent was to have his money grow....!

Answer by ikleyn(52781) (Show Source): You can put this solution on YOUR website!
.
Ken bought 100 shares of a stock for Php50,840.A year later,he sold the stock for Php490.20 a share and paid
the broker 1 1/2% commission. Considering that he could have placed the Php50,840 in a time deposit that pays 3% interest
in a year,was choosing to invest in stocks the better decision?
~~~~~~~~~~~~~~~~~~~~~~~

It is rarely one can see so stupid problem.

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