IF THE FINAL SELLING PRICE OF A STOCK IS 6.38 AND WE MADE 81 % PROFIT WHAT WAS THE INITIAL INVESTMENT.?

{ 4 comments… read them below or add one }

Maha May 27, 2010 at 1:53 pm

You would have purchased the stock for 3.525. However, you can not know what the initial investment without further information regarding the investment; the number of stock purchased and then sold, the profit made in the absolute (not percentage), the total sum of money sold…etc.

The 3.525 assumes that you don’t have to pay anything to anyone – no fees, no taxes, no commisions..etc.

Rhys May 27, 2010 at 2:29 pm

6.38 / 1.81 = 3.524861878

Gabriel M May 27, 2010 at 3:00 pm

going through it really slowly….

final price = initial investment + profit

6.38 = initial investment + profit

6.38 = initial investment + (initial investment) x 0.81

6.38 = initial investment x 1.81

so

initial investment = 3.52 per share

GenY May 27, 2010 at 3:51 pm

Now, selling price of 6.38 is 181%
So, 1% = 6.38/181
Hence, 100% (6.38/181) * 100%
Answer = 3.524861878 was the original price of the stock which you bought it as.

Unless you provide the investment amount, your initial investment cannot be derived from the info you provided.

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