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)
The capital gain can be calculated by finding the difference between the selling price and the purchase price per share, and then multiplying that difference by the number of shares.
Purchase price per share: $5
Selling price per share: $6.50
Number of shares purchased: 50
Capital gain per share = $6.50 - $5 = $1.50
Total capital gain = $1.50 x 50 shares = $75
Therefore, the investor earned a capital gain of $75 on this investment.