Question

Alicia an investment banker sold his shares for $18,470.17 when there was a boom in the stock market. Calculate the amount he paid for the shares if his selling price was 150% of the amount he paid for the shares. Round to the nearest cent

Answer 1

To find the initial amount Alicia paid for her shares, the selling price of $18,470.17 is divided by 1.5, resulting in an original purchase price of $12,313.45.

Step-by-step explanation:

To calculate the amount Alicia paid for the shares when her selling price was 150% of the purchase price, we first need to determine what 100% would be in this context. We do this by dividing her selling price by 1.5 (since 150% as a decimal is 1.5). Thus:
Original Purchase Price = Selling Price / 1.5

Original Purchase Price = $18,470.17 / 1.5
Original Purchase Price = $12,313.45 (rounded to the nearest cent)

Alicia initially paid $12,313.45 for her shares.