Ayear ago, phyllis peterson purchased 100 shares of fidelity's contrafund for $50 each. during the year, her total return from dividends was $1 per share, and there were no capital gains distributions. at the end of the year, the shares were worth $54 each. what was phyllis' rate (percentage) of return? begin my calculating her total return. a. $1b. 1%c. 5%d. 10%e. 15%

option (D) 10%

Explanation:

Data provided in the question:

Purchase price of each share = $50

Dividend received = $1 per share

Worth of shares at the end of the year = $54

Therefore,

Total return on the share

= Dividend received + Worth of shares at the end of the year  - Purchase price

= $1 + $54 - $50

= $5

Therefore,

Rate of return = [ Total return on share ÷ Purchase price ] × 100%

= [ $5 ÷ $50 ] × 100%

= 0.1 × 100%

= 10%

Hence,

option (D) 10%

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%

the third answer is correct.