Question

A share of stock in the Bree Medical Supply Company is quoted at 351

/4
. Suppose you hold 20 shares
of that stock, which you bought at 311
/2
. If you sold your stock at 351
/4
, which of the following would be
true?
A. You made a profit of $705.00.
B. You suffered a loss of $75.00.
C. You made a profit of $75.00.
D. You suffered a loss of $630.00.

Answer 1

Total number of stocks bought = 20
Rate at which each stocks were bought = 31 1/2
= 63/2
Rate at which 20 stocks were bought = 20 * (63/2) dollars
= 10 * 63 dollars
= 630 dollars
Rate at which each stocks were sold = 35 1/4
= 141/4 dollars
Rate at which 20 stocks were sold = 20 * (141/4) dollars
= 5 * 141 dollars
= 705 dollars

705- 630====== 75 C you made a profit of $75.00