How much did the investor gain from selling his stock?

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Question from Julie, a student:

An investor sold 35 shares of stock at 21 and 3/4 per share. The investor had purchased the stock for 18 and 1/2 per share. How much did the investor gain from selling his stock? Thank You in advance for your help

Hi Julie.

This could be answered in more than one way. Is the question asking for the rate of return as a percentage of investment? Or the gain in share price? Or simply the amount of profit based on the two transactions?

If the last choice is the one intended, then you have can subtract the purchase rate (18 ½) from the selling rate (21 ¾) to find the profit rate (21 ¾ - 18 ½). Then multiply that by the number of shares (35) to turn that into the total profit.

Cheers,
Stephen La Rocque.

Math Central is supported by the University of Regina and The Pacific Institute for the Mathematical Sciences.