Question

A person has $40,000 invested in stock A and stock B. Stock A currently sells for $50 a share and stock B sells for $70 a share. If stock B triples in value and stock A goes up 50%, his stock will be worth $112,500. How many shares of each stock does he own? The person owns shares of stock A and shares of stock B.

Answer 1

A person has $ 40, 000 Invested in stock A and stock B Stock A currently seas for $ 50 a share and stock B sells for $70 a share. If stock B triples in value and stock A goes up 50%, his stock will be worth $112,500 How many shares of each stock does he own?

Let A invests 'x' stocks so 'A' investment = 50 x

Let B invests 'y' stocks so 'B' investment = 70 x

50 x + 70 y = 40,000 ------- (1)

Stock B triple in value = 3*70 = 210

Stock A goes up 50% = 50+ 0.5*50 = 50+25 = 75

So, 75 x + 210 y = 112,500 ---------(2)

Now equation (1) is divide with 10

50/10 x + 70/10 y = 40,000/10

5 x + 7 y = 4000 ---------(3)

Now equation (2) is divide with 15

75/15 x + 210/15 y = 112,500./15

5 x + 14 y = 7500 ---------(4)

Now, subtract equation (4) From Equation (3) then we get,

-7 y = - 3500

y = 500

Substitute y = 500 in Equation (1)

50 x + 70 y = 40,000

50 x + 70 (500) = 40000

50 x = 40000 - 35000

50 x = 5000

x = 5000/50

x = 100

The person owns 100 shares of stock A and 500 shares of stocks B.

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