If a stock is bought for $200 and sold for $250, what is the percentage profit?

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Question: If a stock is bought for $200 and sold for $250, what is the percentage profit?

Options:

Correct Answer: 25%

Solution:

Percentage Profit = [(Selling Price - Cost Price) / Cost Price] * 100 = [(250 - 200) / 200] * 100 = 25%

If a stock is bought for $200 and sold for $250, what is the percentage profit?

If a stock is bought for $200 and sold for $250, what is the percentage profit?

Step 1: Identify the Cost Price (CP) of the stock, which is $200.
Step 2: Identify the Selling Price (SP) of the stock, which is $250.
Step 3: Calculate the profit by subtracting the Cost Price from the Selling Price: Profit = SP - CP = 250 - 200.
Step 4: Calculate the profit amount: Profit = 50.
Step 5: To find the percentage profit, use the formula: Percentage Profit = (Profit / Cost Price) * 100.
Step 6: Substitute the values into the formula: Percentage Profit = (50 / 200) * 100.
Step 7: Calculate the division: 50 / 200 = 0.25.
Step 8: Multiply by 100 to get the percentage: 0.25 * 100 = 25%.
Step 9: The percentage profit is 25%.

Percentage Profit – The calculation of profit as a percentage of the cost price, which helps in understanding the profitability of an investment.