Question

Miguel paid a total of $12,000 for stock that was $8 per share. If he sold his shares for $15,000, how much profit on each share did he make?

Answer 1

$2

Explanation:

Cost of 1 share = $8

He bought Shares for amount $12,000

So, He bought number of shares =
`(12000)/(8)`

=
`1500`

Now he sold 1500 shares for amount $15000.

So, S.P. of 1 share =
`(15000)/(1500)`

=
`10`

So, S.P. of 1 share = $10

C.P. of 1 share = $8

So, profit = S.P. - C.P.

= $10-$8

=$2

Thus he made $2 as profit on each share.

Answer 2

The correct answer is:

$2 per share.

Explanation:

He paid $12000 total, at a rate of $8 per share. This means he bought 12000/8 = 1500 shares.

He sells these 1500 shares for $15000; this means he received 15000/1500 = $10 per share.

This means he made 10-8 = $2 profit per share.