A person sold 100 shares of stock at a loss of 40%. If the selling price for the 100 shares was $3,000, which of the following comes closest to what was paid for the stock?
Loss of value is calculated according to the original price. If the shares were sold at $3,000, and this was a loss of 40%, then the purchase price x is related to the 40% loss by the equation: (3000 - x) / x = -40% 3000 - x = -0.4x 3000 = 0.6x x = $5000
