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QuestionCaroline bought 20 shares at 10.5010.50 each. After 10 months, they are worth 11.2511.25 each. What is her profit? A. \$225 B. \$210 C. \$15 D. \$10

Studdy Solution

STEP 1

Assumptions1. Caroline bought20 shares of stock at 101110^{1} \frac{1}{} . After10 months, the value of the stocks was 1111411^{1} \frac{1}{4}
3. The profit is calculated as the difference between the selling price and the buying price

STEP 2

First, we need to calculate the total cost of the shares when Caroline bought them. We can do this by multiplying the number of shares by the buying price.
Cost=Number of sharestimesBuying priceCost = Number\, of\, shares \\times Buying\, price

STEP 3

Now, plug in the given values for the number of shares and the buying price to calculate the cost.
Cost=20times10112Cost =20 \\times10^{1} \frac{1}{2}

STEP 4

Convert the mixed number to an improper fraction.
10112=21210^{1} \frac{1}{2} = \frac{21}{2}Cost=20times212Cost =20 \\times \frac{21}{2}

STEP 5

Calculate the cost of the shares.
Cost=20times212=$210Cost =20 \\times \frac{21}{2} = \$210

STEP 6

Now, we need to calculate the total value of the shares after10 months. We can do this by multiplying the number of shares by the value after10 months.
Value=Number of sharestimesValue after 10 monthsValue = Number\, of\, shares \\times Value\, after\,10\, months

STEP 7

Plug in the given values for the number of shares and the value after10 months to calculate the value.
Value=20times11114Value =20 \\times11^{1} \frac{1}{4}

STEP 8

Convert the mixed number to an improper fraction.
11114=45411^{1} \frac{1}{4} = \frac{45}{4}Value=20times454Value =20 \\times \frac{45}{4}

STEP 9

Calculate the value of the shares after months.
Value=20times454=$225Value =20 \\times \frac{45}{4} = \$225

STEP 10

Now that we have the cost of the shares and their value after10 months, we can calculate the profit. The profit is the difference between the value and the cost.
Profit=Value−CostProfit = Value - Cost

STEP 11

Plug in the values for the value and the cost to calculate the profit.
Profit=$225−$210Profit = \$225 - \$210

STEP 12

Calculate the profit.
Profit=$225−$210=$15Profit = \$225 - \$210 = \$15Caroline would make a profit of $15.

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