The Wall Street Investor
An investor trading through a discount stock broker that charges $10.00 Dollars per transaction bought 200 shares of Vola Tile Corporation at $50.00 Dollars per share. The stock quickly increased in value by 50%, but then lost 40% of its value. The investor sold the stock. How much money did the investor gain or lose?
The cost of 200 shares at $50.00 Dollars each is $10,000.00 Dollars.
The 50% gain on $10,000 is $5,000, making the new total $15,000.00 Dollars.
The 40% loss on $15,000 is $6,000, reducing the total amount to $9,000.00 Dollars.
This is a $1000.00 Dollar loss, plus $10 Dollars for the Buy transaction, and $10 Dollars for the Sell transaction.
The investor lost a total of $1020.00 Dollars.
It seems counterintuitive that the investor should lose money when the percentage of the loss is less than the percentage of the gain. However, the percentage of the loss is calculated on a bigger amount than the percentage of the gain.
Im sorry but your answer is incorrect. Here is the real solution:
Cost of Shares = $10,000
Transaction amt = $10
Investment = $10,010
When calculating real-time dollars, you must include the $10 in your % of increase/decrease.
$10,010 + 50% = $15,015
$15,015 – 40% = $9,009
To sell the shares, you need to subract an additional $10 for transaction fees.
= $9.009 – $10 = $8,999
Actual Loss = $10,010 – $8,999 = $1,011
Dat investor got played homeboi. Rasdawg out \m/
More puzzles to try-
- 3 + 3 = 3 5 + 4 = 4 1 + 0 = 3 2 + 3 = 4 ...Read More »
- There are 10 stacks of 10 coins each. Each coin weights 10 gms. However, one stack of coins is defective ...Read More »
- Which clock works best? The one that loses a minute a day or the one that doesn’t work at all?Read More »
- Paul, Sam and Dean are assigned the task of figuring out two numbers. They get the following information: Both numbers ...Read More »
- Five puzzleFry ship’s pirates have obtained 100 gold coins and have to divide up the loot. The pirates are all ...Read More »
- Four days are there which start with the letter ‘T‘. I can remember only two of them as “Tuesday , Thursday”. ...Read More »
- Two fathers took their sons to a fruit stall. Each man and son bought an apple, But when they returned ...Read More »
- A farmer is taking her eggs to the market in a cart, but she hits a pothole, which knocks over ...Read More »
- Let it be simple and as direct as possible. Interviewer : Tell me how much time (in days) and money would ...Read More »
- Solve this logic sequence puzzle by the correct digit- 8080 = 6 1357 = 0 2022 = 1 1999 = ...Read More »
- A man leaves his house in the morning to go to office and kisses his wife. In the evening on ...Read More »
- Jasmine, Thibault, and Noah were having a night out and decided to order a pizza for $10. It turned out ...Read More »
- Which letter replaces the question markRead More »
- A murderer is condemned to death. He has to choose between three rooms. The first is full of raging fires, ...Read More »
- Richie established a very strange number system. According to her claim for different combination of 0 and 2 you will ...Read More »
- The result of math class test came out. Fariha’s mark was an even number. Srabon got a prime!! Nabila got ...Read More »
- Robi is a very serious student. On the first day of this year his seriousness for study was 1 hour. ...Read More »
- Ragib: I got digits of a 2 digit number Sakib: Is it an odd? Ragib: Yes. Moreover, the sum of ...Read More »
- A boy asks his father, “what is the age of grand father?“. Father replied “He is x years old in ...Read More »
- If u r genius solve it:- 40 * 14 = 11 30 * 13 = 12 20 * 12 = ...Read More »