Answer: He will make $60 in profit.
Step-by-step explanation:
He buys the 20 shares for $12 each so to calculate how much money he spent on the stocks we multiply 20x$12. We find that he spent $240 on the stock.
He sells the 20 shares for $15 each (we can assume already that he will profit since he is selling the same amount for a higher price). We find how much he made from selling by multiplying 20X$15. He made a total of $300 from the stocks.
To find how much he profited, we add the two. Since he bought stocks initially for $240, he has -240. Then we add the 300 since that is how much he earned. -240+300 = 60
Answer:
Profit amount = $60
Step-by-step explanation:
To determine whether Jayden will make a profit or loss, let's calculate the cost of purchasing the 20 shares and the revenue from selling them.
Cost Price (CP): The cost of purchasing the shares.
[tex]\sf \textsf{CP} = \textsf{Number of shares} \times \textsf{Cost per share} [/tex]
[tex]\sf \textsf{CP} = 20 \times \$12 [/tex]
[tex]\sf \textsf{CP} = \$240 [/tex]
Now
Selling Price (SP): The revenue from selling the shares.
[tex]\sf \textsf{SP} = \textsf{Number of shares} \times \textsf{Selling price per share} [/tex]
[tex]\sf \textsf{SP} = 20 \times \$15 [/tex]
[tex]\sf \textsf{SP} = \$300 [/tex]
Since the selling price is greater than cost price.
So, the Jayden will make a profit.
Let's calculate the profit amount:
Profit amount is the difference of selling price and cost price.
So,
[tex]\sf \textsf{Profit} = \textsf{SP} - \textsf{CP} [/tex]
Now, substitute the values and calculate:
[tex]\sf \textsf{Profit} = \$300 - \$240 \\\\ = \$60 [/tex]
Therefore, Jayden will make a profit of $60 when selling the 20 shares.
