Respuesta :
Assuming you mean 25+1/4 and 20+1/4, you bought your stock for 20+1/4, so that means your profit (or loss) is (25+1/4)-(20+1/4)=5. SInce you have 30 stocks, 5*30=150=your profit.
Answer:
C. You'll make a profit of $150.
Step-by-step explanation:
We have been given that a share of stock in the Lofty Cheese Company is quoted at [tex]25\frac{1}{4}[/tex]. You hold 30 shares of that stock. You bought the stock at [tex]20\frac{1}{4}[/tex].
Let us find cost of 30 shares by multiplying cost of each share by 30.
[tex]\text{Cost of 30 shares}=(20\frac{1}{4})\times 30[/tex]
[tex]\text{Cost of 30 shares}=(\frac{81}{4})\times 30[/tex]
[tex]\text{Cost of 30 shares}=(\frac{81\times 30}{4})[/tex]
[tex]\text{Cost of 30 shares}=(\frac{2430}{4})[/tex]
Now let us figure out amount earned from selling these stocks.
[tex]\text{Earnings from 30 shares}=(25\frac{1}{4})\times 30[/tex]
[tex]\text{Earnings from 30 shares}=(\frac{101}{4})\times 30[/tex]
[tex]\text{Earnings from 30 shares}=(\frac{101\times 30}{4})[/tex]
[tex]\text{Earnings from 30 shares}=(\frac{3030}{4})[/tex]
Since we know that profit is difference between total revenue (earnings) and cost. So we will subtract cost of 30 shares from revenue earned from 30 shares.
[tex]\text{Profit}=\text{Total revenue - Cost}[/tex]
[tex]\text{Profit}=\frac{3030}{4}-\frac{2430}{4}[/tex]
[tex]\text{Profit}=\frac{3030-2430}{4}[/tex]
[tex]\text{Profit}=\frac{600}{4}[/tex]
[tex]\text{Profit}=150[/tex]
Therefore, you'll make a profit of $150 and option C is the correct choice.
