A person sold 100 shares of a stock at a loss of 40%. If the selling price of the 100 shares was $3000, which of the following comes closest to what was paid for the stock? a. $4200 b. $4800 c. $5000 d. $7500

The answer is C) $5000

If you multiply 5000 by 40% or. 40 that will give you the amount will be lost which is 2000. 5000 - 2000 = the total amount $3000.

So let's set up an equation:

x-.4x=3000

, where x is the original price of the stock (which is what you want to find)

we subtract. 4x since the. 4x is denoting that 40% of the original price was taken away from the original value (x) which then equals 3000

So,

.6x=3000

x=3000/.6

x=5000