Question

Suppose you paid 411⁄8 for 72 shares of Buzz stock and sold them at 491⁄4. The total brokerage fee was 1⁄8 dollar per share and all other charges amounted to $32.52. a. What was the amount of your profit? b. What was the percent of profit, based on your investment?

Answer 1

A percentage is a way to describe a part of a whole. The amount of your profit is $29.86. The percent of profit, based on your investment is 58.12%.

What are Percentages?

A percentage is a way to describe a part of a whole. such as the fraction ¼ can be described as 0.25 which is equal to 25%.

To convert a fraction to a percentage, convert the fraction to decimal form and then multiply by 100 with the '%' symbol.

The cost of buying 72 shares is $(411/8) = $51.375

The cost of selling 72 shares is $(491/4) = $122.75

The total brokerage fees = $(1/8 × 72) = $9

All other charges amounted = $32.52

The profit is,

Profit = $122.75 - $51.375 - $9 - $32.52

          = $29.855 ≈ $29.86

Hence, the amount of your profit is $29.86.

B.) The percent of profit, is based on your investment.

Since the investment is the cost of purchasing the share, therefore, the percent of profit, based on your investment can be written as,

Profit % = $29.86 /$51.375 × 100% = 58.12%

hence, The percent of profit, based on your investment is 58.12%.

Learn more about Percentages:

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