Question

question 25
2 pts
robert bought 10 shares of stock at $6.00 per share and sold them for $7 per share. what was his roi?
question 26
2 pts
which of the following is most likely to represent a fixed rate, secured debt?
a student loan
a credit card
an auto loan
a prepaid debit card
question 27
2 pts
a loan with a shorter term length will have _____ monthly payments, and you will pay _____ in total interest.
lower, more
higher, more
higher, less
lower, less

Explanation:

Question 25

Step1: Calculate Cost and Revenue

Cost: \(10 \times 6 = 60\) dollars. Revenue: \(10 \times 7 = 70\) dollars.

Step2: Calculate ROI

ROI formula: \(\frac{\text{Revenue}-\text{Cost}}{\text{Cost}} \times 100\%\). So \(\frac{70 - 60}{60} \times 100\%=\frac{10}{60} \times 100\% \approx 16.67\%\).

• A student loan is often unsecured.
• A credit card is unsecured debt with variable rates.
• An auto loan is secured (car as collateral) and often has a fixed rate.
• A prepaid debit card is not debt.

So an auto loan fits fixed - rate, secured debt.

For a loan, a shorter term means you pay off the principal faster. So monthly payments are higher (to pay off in less time). Since you pay interest for a shorter time, total interest is less. For example, a 5 - year loan vs a 10 - year loan for the same amount and rate: the 5 - year has higher monthly payments but less total interest.

Answer:

Approximately \(16.67\%\) (or \(\frac{1}{6}\) or \(16.67\%\) depending on required format)

Question 26