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11. A painting is bought for $12 000 and then a year later sold for $12 300.
a) Is this a profit or a loss?
b) Determine the profit/loss.
c) Determine the percentage profit/loss.
d) Inflation was 2.9% for this year Determine
whether this was a good sale.

Respuesta :

a) This is a profit.

b) Profit/Loss = Selling Price - Buying Price
Profit/Loss = $12,300 - $12,000
Profit/Loss = $300

c) Percentage Profit/Loss = (Profit/Loss / Buying Price) * 100%
Percentage Profit/Loss = ($300 / $12,000) * 100%
Percentage Profit/Loss ≈ 2.5%

d) Inflation rate = 2.9%
The percentage profit is less than the inflation rate. Therefore, the real value of the money has decreased due to inflation, and this sale might not be considered as good in terms of real purchasing power. However, it still resulted in a nominal profit.

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