If a trader makes a profit of 25% on a stock bought for $80, what is the selling

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Question: If a trader makes a profit of 25% on a stock bought for $80, what is the selling price?

Options:

Correct Answer: $100

Solution:

Selling Price = Cost Price + Profit = 80 + (25% of 80) = 80 + 20 = $100.

If a trader makes a profit of 25% on a stock bought for $80, what is the selling price?

If a trader makes a profit of 25% on a stock bought for $80, what is the selling price?

Step 1: Identify the cost price of the stock, which is $80.
Step 2: Calculate the profit percentage, which is 25%.
Step 3: Find the amount of profit by calculating 25% of $80. This is done by multiplying 80 by 0.25 (which is 25% in decimal form).
Step 4: Calculate 25% of $80: 80 * 0.25 = $20.
Step 5: Add the profit to the cost price to find the selling price. This means you add $20 (the profit) to $80 (the cost price).
Step 6: Calculate the selling price: $80 + $20 = $100.

Profit Calculation – Understanding how to calculate profit as a percentage of the cost price and how it affects the selling price.
Selling Price Formula – Applying the formula for selling price, which is the sum of the cost price and the profit.