To calculate the percentage gain from the sale of the farm, you can follow these steps:
- Determine the cost price (CP) and selling price (SP):
The man bought the farm for $2400 (CP) and sold it for $2700 (SP). - Calculate the gain:
Gain can be calculated using the formula:Gain = Selling Price - Cost Price.
Plugging in the values:Gain = $2700 - $2400 = $300. - Calculate the percentage gain:
The formula for percentage gain is:Percentage Gain = (Gain / Cost Price) × 100.
Substituting the values:Percentage Gain = ($300 / $2400) × 100. - Perform the calculation:
Percentage Gain = 0.125 × 100 = 12.5%.
Therefore, the man made a 12.5% gain when he sold the farm.