A stockholder solder her shares and made a profit of $1,408. If that is a profit of 24%, how much were her shares when she originally purchased them?
To calculate the original price of the shares, we can use the formula:
Profit = Original Price × Percentage Profit
Given that the profit is $1,408 and the percentage profit is 24%, we can plug these values into the formula:
$1,408 = Original Price × 0.24
To find the original price, we divide both sides of the equation by 0.24:
Original Price = $1,408 / 0.24
Calculating this, we find:
Original Price = $5,866.67
To determine the original price of the shares, we need to set up an equation based on the given information.
Let's assume the original price of the shares is represented as x dollars.
We know that the profit made by selling the shares is $1,408, which is 24% of the original price. To calculate the profit amount, we can use the formula:
Profit = Original Price * Percentage
So in this case, we have:
$1,408 = x * 0.24
To solve this equation for x (the original price), we need to isolate x on one side of the equation.
Dividing both sides of the equation by 0.24:
$1,408 / 0.24 = x
This gives us:
$5,866.67 = x
Therefore, the original price of the shares was approximately $5,866.67.
1.24x = 1,408
x = 1,408/1.24
x = 1,135.48