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Caroline bought 20 shares of stock at [tex]$10 \frac{1}{2}$[/tex], and after 10 months the value of the stocks was [tex]$11 \frac{1}{4}$[/tex]. If Caroline were to sell all her shares of this stock, how much profit would she make?

A. [tex]$\$[/tex]210$

B. [tex]$\$[/tex]10$

C. [tex]$\$[/tex]225$

D. [tex]$\$[/tex]15$

Sagot :

Let's breakdown the problem step-by-step to determine the profit Caroline would make by selling her shares.

1. Initial Value Calculation:

Caroline bought 20 shares initially at a price of \( \$10 \frac{1}{2} \) per share.
This can be represented as \( 10 + \frac{1}{2} = 10.5 \) dollars per share.

Therefore, the initial total value of her shares is:
[tex]\[ \text{Initial Total Value} = 20 \text{ shares} \times 10.5 \text{ dollars/share} = 210 \text{ dollars} \][/tex]

2. Final Value Calculation:

After 10 months, the value of each share increased to \( \$11 \frac{1}{4} \) per share.
This can be represented as \( 11 + \frac{1}{4} = 11.25 \) dollars per share.

Therefore, the final total value of her shares is:
[tex]\[ \text{Final Total Value} = 20 \text{ shares} \times 11.25 \text{ dollars/share} = 225 \text{ dollars} \][/tex]

3. Profit Calculation:

The profit Caroline would make by selling all her shares is the difference between the final total value and the initial total value.
[tex]\[ \text{Profit} = \text{Final Total Value} - \text{Initial Total Value} = 225 \text{ dollars} - 210 \text{ dollars} = 15 \text{ dollars} \][/tex]

So, the profit Caroline would make from selling all her shares is \$15. Therefore, the best answer is:

D. $15