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An investor bought 10000 50k share at #1.13½. She received at first dividend of 12½% and then sold the shares at #1.18½. The cost of buying and selling the shares amounted to #1060.

How much did she gain altogether

1 Answer

3 votes

Answer: The investor gained #440 altogether.

Step-by-step explanation: Calculate the total cost of buying the shares.

Calculate the total revenue from selling the shares.

Determine the gain.

Let's break down each step:

Step 1: Calculate the total cost of buying the shares.

The investor bought 10,000 shares at a price of #1.13½ per share.

Total cost of buying = Number of shares × Price per share

Total cost of buying = 10,000 shares × #1.13½ per share

To simplify the calculation, we'll convert #1.13½ to decimal form:

#1.13½ = #1.135

So,

Total cost of buying = 10,000 shares × #1.135 per share

Step 2: Calculate the total revenue from selling the shares.

The investor sold the shares at a price of #1.18½ per share.

Total revenue from selling = Number of shares × Price per share

Total revenue from selling = 10,000 shares × #1.18½ per share

To simplify the calculation, we'll convert #1.18½ to decimal form:

#1.18½ = #1.185

So,

Total revenue from selling = 10,000 shares × #1.185 per share

Step 3: Determine the gain.

The cost of buying and selling the shares amounted to #1060.

Gain = Total revenue from selling - Total cost of buying - Cost of buying and selling

Now, let's perform the calculations:

Total cost of buying = 10,000 shares × #1.135 per share

= 10,000 × 1.135

≈ #11,350

Total revenue from selling = 10,000 shares × #1.185 per share

= 10,000 × 1.185

≈ #11,850

Gain = Total revenue from selling - Total cost of buying - Cost of buying and selling

= #11,850 - #11,350 - #1060

= #440

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