Question

Mike invested $2,562 in a company when the stock was $15.25 per share. If he sells that stock for $17.75 per share, what would be Mike's profit, to the nearest dollar?

Answer 1

Mike's profit from selling his stock at $17.75 per share, after initially investing $2,562 at $15.25 per share, is approximately $420.

Step-by-step explanation:

To calculate Mike's profit from selling his stock, we need to determine how many shares he bought at $15.25 per share with his investment of $2,562. We do this by dividing the total investment by the price per share: $2,562 ÷ $15.25, which gives us 168 shares (rounded down to the nearest whole share since you can't own a fraction of a share). Next, we calculate the total amount he would receive from selling these shares at $17.75 per share by multiplying the number of shares by the selling price: 168 shares × $17.75. This results in a total of $2,982. To find the profit, we subtract the initial investment from the total selling amount: $2,982 - $2,562 = $420. Therefore, Mike's profit, to the nearest dollar, would be $420.