Question

The formula for percentage increase I (given as a decimal) of an investment is I=S−P/P, where P is the purchase price and S is the sale price. You sell a stock at a price of $75, earning a percentage increase of 25%. What was the purchase price of the stock? Also solve the formula for P pls show steps

Answer 1

Answer: $60

Step-by-step explanation:

Given : The formula for percentage increase I (given as a decimal) of an investment is I = (S - P)/P , where P is the purchase price and S is the sale price.

If Price of stock S= $75 and the percentage increase of 25% i.e. I = 0.25.

Then, to find P , we substitute the values of S and I in the given equation, we get

I = (S-P)/P

→ 0.25 = (75-P)/P

→ 0.25P = 75-P

→ P + 0.25P = 75

→ (1.25)P = 75

→ P = 75/1.25

=60

Hence, the purchase price of the stock was $60.

Step-by-step explanation:

hope it helps you....

Answer 2

Given: The formula for percentage increase I (given as a decimal) of an investment is I=S−P/P, where P is the purchase price and S is the sale price. You sell a stock at a price of $75, earning a percentage increase of 25%.

To find: The purchase price of the stock.

Solution:

According to the question, the percentage increase of an investment is given by the following formula.

$I = \frac{S-P}{P}$

Here, the percentage increase of the investment is 25% which is 0.25 and the sale price is $75. On substituting these values, the following equation is formed.

$0.25 = \frac{75 - P}{P}$

$1.25 P = 75$

$P = 60$

Now, the formula for P can be found by rearranging the initially given formula.

$I = \frac{S-P}{P}$

$IP = S-P$

$P(I + 1) = S$

$P = \frac{S}{I+1}$

Therefore, the purchase price of the stock is $60. Also, the formula for P is P=S/(I+1).