Kyle buys $20,000 of company XYZ's shares, at a share price of $100. A year later, XYZ's share price is $130, and Kyle sells all his shares. How many dollars did Kyle's investment gain?

To determine how many dollars Kyle's investment gained, we can break down the problem as follows:

1. **Initial Purchase:**
   - Kyle buys $20,000 worth of shares at $100 per share.
   - The number of shares Kyle buys is calculated by:
     \[
     \text{Number of shares} = \frac{\text{Total investment}}{\text{Share price}} = \frac{20,000}{100} = 200 \text{ shares}
     \]

2. **Selling After One Year:**
   - After one year, the share price increases to $130.
   - The value of Kyle's 200 shares at the new price is:
     \[
     \text{Total value} = 200 \times 130 = 26,000 \text{ dollars}
     \]

3. **Investment Gain:**
   - The gain from the investment is the difference between the selling price and the initial investment:
     \[
     \text{Investment gain} = 26,000 - 20,000 = 6,000 \text{ dollars}
     \]

**Kyle's investment gained $6,000.**

Would you like further details on this calculation or have any other questions?

Here are five related questions:
1. How would Kyle's gain change if the share price had increased to $150 instead?
2. What would the gain or loss be if the share price had dropped to $90 instead?
3. How many shares would Kyle own if he had only invested $10,000 initially?
4. What percentage return did Kyle achieve with his investment?
5. How would the outcome differ if Kyle sold his shares after only 6 months, assuming the price rose to $115?

**Tip:** Always consider the percentage gain or loss when evaluating investments, as it provides a clearer picture of performance relative to the amount invested.

Discover how Kyle calculates his investment gain in stocks. Understand the steps involved in determining the profit from buying and selling shares, with a practical example of investing $20,000 in company XYZ shares at $100 per share, selling them a year later at $130 per share, resulting in a gain of $6,000.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation