Question

Danny bought 2 500 units and 3 000 units of shares of a company at the price of RM1.76 per unit and RM1.68 per unit respectively. At the end, he sold all the shares at the price of RM1.75 per unit. Determine whether Danny gained profit. Give your reason.​

Answer 1

Danny made a profit. His income was greater than his cost

Explanation:

The amount Danny paid for his shares is ...

2500 × ₹1.76 +3000 × ₹1.68 = ₹4400 +5040 = ₹9440

The amount Danny received for his shares is ...

(2500 +3000) × ₹1.75 = ₹9625

The amount of profit Danny made on his transactions was ...

₹9625 -9440 = ₹185

Danny made a profit. His income was greater than his cost.