Calculating Prema's Profit from Selling Gold in 2010

What would Prema's profit have been if she sold everything in 2010?

If Prema sold everything in 2010, her profit would have been $13,764.

Calculating Prema's Profit from Selling Gold

1. Prema's Gold Purchase in 2005: Prema purchased 18 ounces of gold in 2005 for $409 per ounce. To find the total cost of her gold holdings, we can multiply the number of ounces (18) by the cost per ounce ($409). Total cost of gold holdings in 2005 = 18 * $409 = $7,362. 2. Selling a Third of Gold Holdings in 2009: In 2009, Prema sold a third of her gold holdings, which is 6 ounces. She sold these 6 ounces at a price of $887 per ounce. Amount received for 6 ounces in 2009 = 6 * $887 = $5,322. 3. Selling the Remaining Gold Holdings in 2010: Prema sold the remaining gold holdings, which is 12 ounces, in 2010 at a price of $1,317 per ounce. Amount received for 12 ounces in 2010 = 12 * $1,317 = $15,804. 4. Calculating Total Amount Received and Profit: Total amount received = Amount received for 6 ounces in 2009 + Amount received for 12 ounces in 2010 Total amount received = $5,322 + $15,804 = $21,126. Profit = Total amount received - Total cost of gold holdings Profit = $21,126 - $7,362 = $13,764. In conclusion, if Prema sold everything in 2010, her profit would have been $13,764.
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