A stock is bought for $80 and sold for $100. What is the profit percentage?

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Question: A stock is bought for $80 and sold for $100. What is the profit percentage?

Options:

Correct Answer: 25%

Solution:

Profit Percentage = [(Selling Price - Cost Price) / Cost Price] * 100 = [(100 - 80) / 80] * 100 = 25%.

A stock is bought for $80 and sold for $100. What is the profit percentage?

A stock is bought for $80 and sold for $100. What is the profit percentage?

Step 1: Identify the Cost Price (CP) of the stock, which is $80.
Step 2: Identify the Selling Price (SP) of the stock, which is $100.
Step 3: Calculate the Profit by subtracting the Cost Price from the Selling Price: Profit = SP - CP = 100 - 80.
Step 4: Calculate the Profit, which is $20.
Step 5: Use the Profit to calculate the Profit Percentage using the formula: Profit Percentage = (Profit / Cost Price) * 100.
Step 6: Substitute the values into the formula: Profit Percentage = (20 / 80) * 100.
Step 7: Calculate the fraction: 20 / 80 = 0.25.
Step 8: Multiply by 100 to get the percentage: 0.25 * 100 = 25%.

Profit Calculation – Understanding how to calculate profit and profit percentage based on selling price and cost price.
Percentage Calculation – Applying the formula for calculating percentage to determine profit percentage.