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An investor bought 200 shares at $50 each and sold them at $60 each. What is the

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Question: An investor bought 200 shares at $50 each and sold them at $60 each. What is the total profit?

Options:

  1. $2000
  2. $1000
  3. $1500
  4. $2500

Correct Answer: $1000

Solution: 

Total Cost Price = 200 * 50 = $10000. Total Selling Price = 200 * 60 = $12000. Profit = Selling Price - Cost Price = 12000 - 10000 = $2000.

An investor bought 200 shares at $50 each and sold them at $60 each. What is the

Practice Questions

Q1
An investor bought 200 shares at $50 each and sold them at $60 each. What is the total profit?
  1. $2000
  2. $1000
  3. $1500
  4. $2500

Questions & Step-by-Step Solutions

An investor bought 200 shares at $50 each and sold them at $60 each. What is the total profit?
  • Step 1: Calculate the total cost price by multiplying the number of shares (200) by the cost per share ($50). This gives you 200 * 50 = $10000.
  • Step 2: Calculate the total selling price by multiplying the number of shares (200) by the selling price per share ($60). This gives you 200 * 60 = $12000.
  • Step 3: Find the profit by subtracting the total cost price ($10000) from the total selling price ($12000). This gives you 12000 - 10000 = $2000.
  • Cost Price and Selling Price – Understanding the difference between the cost price (the price at which shares were bought) and the selling price (the price at which shares were sold) is crucial for calculating profit.
  • Profit Calculation – Profit is calculated by subtracting the total cost price from the total selling price.
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