Solve the problem.
-In 2001, Aaron purchased 100 shares of a pharmaceutical company's stock for a price of $2.30. In 2002, Aaron sold all 100 shares for a price of $6.70. What was Aaron's total gain or loss for this transaction?
A)gain of $44
B)loss of $440
C)loss of $44
D)gain of $440

Question

Quizplus · Accepted Answer

Aaron purchased 100 shares for a price of $2.30 per share, so the total cost was 100*$2.30 = $230.
Aaron sold all 100 shares for a price of $6.70 per share, so the total revenue was 100*$6.70 = $670.
To find the gain or loss, we need to subtract the total cost from the total revenue: 
Total revenue - Total cost = Gain/Loss 
$670 - $230 = $440 
Therefore, Aaron's total gain was $440. The total amount Aaron spent to buy 100 shares in 2001 was:

$2.30/share x 100 shares = $230

The total amount Aaron received from selling those 100 shares in 2002 was:

$6.70/share x 100 shares = $670

To calculate the gain or loss, we need to subtract the initial cost from the selling price:

$670 - $230 = $440

Since the result is positive, Aaron had a gain of $440. Therefore, the correct answer is D.

Solve the Problem. -In 2001, Aaron Purchased 100 Shares of a Pharmaceutical Company's