Question

A stockholder sold her shares and made a profit of $1,367. If that is a profit of 23%, how much were the shares worth when she originally purchased them?

The original cost is $ (Round to the nearest cent.)

Answer 1

To find out how much the shares were worth when the stockholder originally purchased them, we can use the information given about the profit percentage and the amount of profit made.

Let's assume the original cost of the shares is represented by "x" dollars.

According to the given information, the profit made was $1,367, which is equivalent to 23% of the original cost.

To calculate the original cost, we can set up the following equation:

Profit = Original Cost * Profit Percentage

$1,367 = x * 0.23

To solve for x, we divide both sides of the equation by 0.23:

x = $1,367 / 0.23 ≈ $5,956.52

Therefore, the shares were worth approximately $5,956.52 when the stockholder originally purchased them.