GED Math: Calculating Stock Profit with Long Multiplication

Calculating Stock Profit

• 🎯 The problem involves calculating the total profit from a stock trade where Arnold bought and sold eBay shares.
• 💡 Arnold purchased 85 shares at $60 per share and later sold them at $95 per share.

Method 1: Two-Step Calculation

• 💰 Calculate the original investment by multiplying shares by purchase price.
• 💰 Calculate the total sale amount by multiplying shares by selling price.
• 📈 Find the difference between the total sale amount and the original investment to determine the profit.

Method 2: Profit Per Share

• ⚡ A simpler method is to find the profit per share first.
• ⚡ Subtract the purchase price ($60) from the selling price ($95) to get the profit per share ($35).
• ⚡ Multiply the profit per share ($35) by the total number of shares (85) to find the total profit.

Long Multiplication for Profit

• 🧮 The calculation involves multiplying $35 per share by 85 shares.
• 🧮 Step 1: Multiply 85 by 5 (units digit of 35), resulting in 425.
• 🧮 Step 2: Multiply 85 by 30 (tens digit of 35), resulting in 2550.
• ➕ Add the results from Step 1 and Step 2: 425 + 2550 = 2975.
• ✅ Arnold generated a total profit of $2,975 on his trade.