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Math  /  Numbers & Operations

QuestionAn investor purchased 70 shares of stock in a company for $4.760\$ 4.760, with an $8\$ 8 commission. Later, all of the stock was sold at $71\$ 71 per share. What was the gain or loss on this investment?
Gain or Loss =$[?]=\$[?]
Enter a gain as positive and a loss as negative.

Studdy Solution

STEP 1

1. The investor purchased 70 shares of stock.
2. The purchase price was $4760\$4760 with an additional $8\$8 commission.
3. The stock was later sold at $71\$71 per share.
4. The gain or loss is calculated by subtracting the total cost from the total selling price.

STEP 2

1. Calculate the total cost of purchasing the shares, including the commission.
2. Calculate the total selling price of the shares.
3. Determine the gain or loss by subtracting the total cost from the total selling price.

STEP 3

Calculate the total cost of purchasing the shares, including the commission.
Total Cost=Purchase Price+Commission=$4760+$8=$4768 \text{Total Cost} = \text{Purchase Price} + \text{Commission} = \$4760 + \$8 = \$4768

STEP 4

Calculate the total selling price of the shares.
Total Selling Price=Number of Shares×Selling Price per Share=70×$71=$4970 \text{Total Selling Price} = \text{Number of Shares} \times \text{Selling Price per Share} = 70 \times \$71 = \$4970

STEP 5

Determine the gain or loss by subtracting the total cost from the total selling price.
Gain or Loss=Total Selling Price−Total Cost=$4970−$4768=$202 \text{Gain or Loss} = \text{Total Selling Price} - \text{Total Cost} = \$4970 - \$4768 = \$202
The gain on this investment is $202\$202.

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