est Exam 3 This Question 1 pt 50120 4 complete Angelica purc

est: Exam 3 This Question: 1 pt 50120 (4 complete) Angelica purchased stock valued at $30,000 in 2000. In 2005, she sold the stock for $34,500 Angelica\'s capital gain, for tax purposes, is which is a 1% gain on her investment. Over the period during which Angelica owned her stock, asset prices rose by 8% due to i ation. Thus Angel as al tal gen is % ors a Enter your answer in each of the answer boxes.

Solution

1.

Capital gain = 34500 – 30000 = $4500

% of capital gain = 4500/30000 = 15%

2.

Inflation rate = 8%

So, % of real capital gain = 15% - 8% = 7%

Real capital gain = 30000*7% = $2100