Word Problem

Question

A person has $30,000 invested in stock A and stock B. Stock A currently sells for $40 a share and stock B sells for $90 a share. If stock B triples in value and Stock A goes up 50%, his stock will be worth $72,000. How many shares of each stock does he own?

Answer 1

40A + 90B = 30000   ---------->40A = 30000 - 90B                   eq. 1

 

 

 

1.5(40A) + 270B = 72000          eq. 2

 

substitute eq. 1 in to eq. 2

 

 

1.5( 30000 - 90B)  + 270B = 72000

 

45000 - 135B + 270B = 72000

 

135B + 45000 = 72000

 

135B = 72000 - 45000 = 27000

 

135B = 27000

 

B = 200

 

40A = 30000 - 90B -----> A =(30000 - 90B)/40

 

A = [30000 - 90(200)]/ 40

 

A = 300

 

so, 300 stocks A and 200 stocks B