Your Reward for Hard Work Your paycheck should reflect your gross income. Why is it important to know how to calculate your gross income?

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Planning for the Future How you spend and invest
your money can have an impact on your lifestyle
at a later time. What might you want to start
saving for in the near future?
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Lesson Objective Compute the annual dividend
and annual yield of a stock investment.
Content Vocabulary
dividend Money earned as a shareholder of a
corporation.

• dividend

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Example 1
Bill Tennyson paid a total of 3,738.43 for 75
shares of Watson Parcel Service. He sold the
stock for 51.50 a share and paid a sales
commission of 39.45. What is the profit or loss
from the sale?
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Example 1 Answer Step 1
Find the net sale. Amount of Sale
Commission (51.50 75) 39.45 3,862.50
39.45 3,823.05
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Example 1 Answer Step 2
Is the net sale greater than the total paid? Yes,
3,823.05 is greater than 3,738.43.
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Example 1 Answer Step 3
Find the profit. Net Sale Total Paid 3,823.05
3,738.43 84.62
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Practice 1
Bought 375 shares of stock. Paid a total of
4,252.50. Sold at 14.90 per share. Paid a
commission of 39. What is the profit or loss?
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Practice 1 Answer
1,296 profit
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Practice 2
Bought 400 shares of stock for a total of
14,000. Sold for 31 per share. Paid 19.99
commission. What is the profit or loss?
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Practice 2 Answer
1,619.99 loss