An investor purchased 50 shares of stock in a company in 2015. At the time the investor purchased the stock, the value of the stock was priced at $5 per share. The investor sold all 50 shares of stock in 2019. The value of the stock at the time of sale was $6.50 per share. What is the capital gain the investor earned on this investment?(1 point) Responses
A. $250
B. $325
C. $75
D. $50
To find the capital gain, we need to calculate the difference between the selling price and the purchase price per share, and then multiply it by the number of shares.
Purchase price per share: $5
Selling price per share: $6.50
Number of shares: 50
Capital gain = (Selling price per share - Purchase price per share) * Number of shares
= ($6.50 - $5) * 50
= $1.50 * 50
= $75
Therefore, the investor earned a capital gain of $75 on this investment.
The answer is C. $75.