A trader bought a stock for $500 and sold it for $600. What is the profit percen

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Question: A trader bought a stock for $500 and sold it for $600. What is the profit percentage?

Options:

Correct Answer: 40%

Solution:

Profit = Selling Price - Cost Price = 600 - 500 = 100. Profit Percentage = (100 / 500) * 100 = 20%

A trader bought a stock for $500 and sold it for $600. What is the profit percentage?

A trader bought a stock for $500 and sold it for $600. What is the profit percentage?

Step 1: Identify the cost price of the stock. In this case, it is $500.
Step 2: Identify the selling price of the stock. In this case, it is $600.
Step 3: Calculate the profit by subtracting the cost price from the selling price. Profit = Selling Price - Cost Price = 600 - 500.
Step 4: Calculate the profit amount. Profit = 100.
Step 5: To find the profit percentage, divide the profit by the cost price. Profit Percentage = Profit / Cost Price.
Step 6: Substitute the values: Profit Percentage = 100 / 500.
Step 7: Calculate the division: 100 / 500 = 0.2.
Step 8: To convert this to a percentage, multiply by 100. Profit Percentage = 0.2 * 100.
Step 9: Calculate the final profit percentage: Profit Percentage = 20%.

Profit Calculation – Understanding how to calculate profit by subtracting the cost price from the selling price.
Profit Percentage – Calculating profit percentage using the formula (Profit / Cost Price) * 100.