Hey there! Sign in to join this conversationNew here? Join for free
    • Thread Starter
    Offline

    8
    ReputationRep:
    how is the answer £300 loss. i have tried to understand it but i still have no idea! does anyone have a method to find the answer to these types of questions?

    here's the question:

    The price of a particular share varies from day to day. On Monday the price of the share was £1. Tuesday’s price was 20% higher than Monday’s, and Thursday’s price was 25% up on Wednesday’s price. By the Friday of that week the price had returned to £1.
    Helen bought £1 000 worth of this share on Monday and then sold them on Thursday to make a profit of £350.
    Paul bought £3000 worth of this share on Tuesday, but had to sell them the following day.
    Assuming that there are negligible costs associated with buying and selling these shares, what was the return on Paul’s investment?
    Offline

    3
    ReputationRep:
    You need to use the 1000 value to figure out the percentage change from Tuesday to Wednesday. So firstly multiply 1000 by 1.20 and you will get 1200. Multiply this again by 1.25 and you will get 1500. But you know that the profit is 350 and not 500. So do 1500x = 1350 and solve to get a value for x. Multiply this value of x by 3000 and you will get 2700. Therfore he lost 300.
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    What newspaper do you read/prefer?
    Help with your A-levels

    All the essentials

    The adventure begins mug

    Student life: what to expect

    What it's really like going to uni

    Rosette

    Essay expert

    Learn to write like a pro with our ultimate essay guide.

    Uni match

    Uni match

    Our tool will help you find the perfect course for you

    Study planner

    Create a study plan

    Get your head around what you need to do and when with the study planner tool.

    Study planner

    Resources by subject

    Everything from mind maps to class notes.

    Hands typing

    Degrees without fees

    Discover more about degree-level apprenticeships.

    A student doing homework

    Study tips from A* students

    Students who got top grades in their A-levels share their secrets

    Study help links and info

    Can you help? Study help unanswered threadsRules and posting guidelines

    Sponsored content:

    HEAR

    HEAR

    Find out how a Higher Education Achievement Report can help you prove your achievements.

    Groups associated with this forum:

    View associated groups
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.