Question

The formula for percentage increase I (given as a decimal) of an investment is I=S−PP, where P is the purchase price and S is the sale price. You sell a stock at a price of $75, earning a percentage increase of 25%. What was the purchase price of the stock?

Solve the formula for P.

P=

The purchase price of the stock was $_

Answer 1

18.75/75=(75/75) -
p =(75-18.5)/75
p=56.5/75
p=0.75(3recurring)

Answer 2

Answer: $60

Explanation:

Given : The formula for percentage increase I (given as a decimal) of an investment is
`I=(S-P)/(P)`, where P is the purchase price and S is the sale price.

If Price of stock S= $75 and the percentage increase of 25% i.e. I=0.25.

Then, to find P , we substitute the values of S and I in the given equation, we get

`0.25=(75-P)/(P)\\\\\Rightarrow\ 0.25P=75-P\\\\\Rightarrow\ P+0.25P=75\\\\\Rightarrow\ (1.25)P=75\\\\\Rightarrow\ P=(75)/(1.25)=60`

Hence, the purchase price of the stock was $60.