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Ludmilka [50]
3 years ago
14

The formula for percentage increase I (given as a decimal) of an investment is I=S−PP, where P is the purchase price and S is th

e 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?
Solve the formula for P.

P=

The purchase price of the stock was $_
Mathematics
2 answers:
sattari [20]3 years ago
5 0
18.75/75=(75/75) -
p =(75-18.5)/75
p=56.5/75
p=0.75(3recurring)
vlabodo [156]3 years ago
3 0

Answer: $60

Step-by-step explanation:

Given : The formula for percentage increase I (given as a decimal) of an investment is I=\dfrac{S-P}{P}, where P is the purchase price and S is the sale price.

If Price of stock S= $75 and the percentage increase of 25% i.e. I=0.25.

Then, to find P , we substitute the values of S and I in the given equation, we get

0.25=\dfrac{75-P}{P}\\\\\Rightarrow\ 0.25P=75-P\\\\\Rightarrow\ P+0.25P=75\\\\\Rightarrow\ (1.25)P=75\\\\\Rightarrow\ P=\dfrac{75}{1.25}=60

Hence, the purchase price of the stock was $60.

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