Question

Caroline bought 20 shares of stock at 101/2, and after 10 months the value of the stocks was 111/4. If Caroline were to sell all her shares of this stock, how much profit would she make? A. $10 B. $15 C. $225 D. $210

Answer 1

Your answer will be  $15.

Answer 2

$15 profit would Caroline make .

Option (B) is correct .

Explanation:

As given

`Caroline\ bought\ 20\ shares\ of\ stock\ at\ 10 (1)/(2).`

i.e

`Caroline\ bought\ 20\ shares\ of\ stock\ at\ (21)/(2).`

`After\ 10\ months\ the\ value\ of\ the\ stocks\ was\ 11 (1)/(4).`

i.e

`After\ 10\ months\ the\ value\ of\ the\ stocks\ was\ (45)/(4).`

Thus

Profit = (Cost of the 20 stock after 10 month - Cost of the 20 stock before 10 month ) × Total number of shares .

`Profit = ((45)/(4) - (21)/(2))* 20`

L.C.M of (4,2) = 4

`Profit = (45 - 21* 2)/(4)* 20`

`Profit = (45 - 42)/(4)* 20`

`Profit = (3)/(4)* 20`

Profit = 3 × 5

Profit = $15

Therefore the $15 profit would Caroline make .

Option (B) is correct .