Question

a share of stock in the bree medical supply company is quoted at 35 1/4. suppose you hold 20 shares of that stock, which you bought at 31 1/2. if you sold your stock at 35 1/4, which of the following is true? A. you suffered a loss of #630.00. B. you suffered a loss of $75.00. C. you made a profit of $705.00. D. you made a profit of $75.00

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
Then
Amount of profit made by selling 20 stocks = (705 - 630) dollars
= 75 dollars
So the total amount of profit made is $75. The correct option in regards to the given question is option "D".