Question

The formula for percentage increase I (given as a decimal) of an investment is I=S−P/P, where P is the purchase price and S is the sale price. You sell a stock at a price of $75, earning a percentage increase of 25%. What was the purchase price of the stock? Also solve the formula for P pls show steps

Answer 1

We are given the formula in the questions, so all we need to do is solve.

0.25 = 75-p/p

0.25 = 75 - p

0.25p + p = 75

1.25p = 75

1.25p/1.25 = 75/1.25

p = 60

Therefore, the purchase price was $60.

Best of Luck!