Gunther earned a 62.5 per cent return on a share that he purchased one year ago. The share is now worth $12, and he received a dividend of $1 during the year. How much did Gunther originally pay for the share?
A) $7.00
B) $7.50
C) $8.00
D) $8.50

Question

Quizplus · Accepted Answer

Let's call the original price that Gunther paid for the share "x".

Given that he earned a 62.5% return, we can set up the equation: 
1.625x = 12 + 1

Simplifying: 
1.625x = 13 
x = 8

Therefore, Gunther originally paid $8.00 for the share.

Gunther Earned a 62