Compute the total and annual returns on the described investment.
Six years after buying 200 shares of $X Y Z$ stock for $\$ 40$ per share, you sell the stock for $\$ 11,300$.
Answer
Final Answer: The total return on the investment is \(\boxed{3300}\) and the annual return is \(\boxed{550}\). Therefore, the total and annual returns on the investment are \(\boxed{3300}\) and \(\boxed{550}\) respectively.
Step 1 ：Calculate the total cost of the investment by multiplying the number of shares bought (200) by the cost per share ($40). This gives us \(200 \times 40 = 8000\).
Step 2 ：Calculate the total return from the investment, which is given by the selling price of the stock ($11,300).
Step 3 ：Calculate the total return on the investment by subtracting the total cost of the investment from the total return from the investment. This gives us \(11300 - 8000 = 3300\).
Step 4 ：Calculate the annual return by dividing the total return by the number of years the investment was held (6 years). This gives us \(\frac{3300}{6} = 550\).
Step 5 ：Final Answer: The total return on the investment is \(\boxed{3300}\) and the annual return is \(\boxed{550}\). Therefore, the total and annual returns on the investment are \(\boxed{3300}\) and \(\boxed{550}\) respectively.
