Norman and suzanne own 25 shares of a fast food restaurant stock and 75 shares of a toy company stock.

Question

At the close of the markets on a particular day in 2004, their stock portfolio consisting of these two stocks was worth $1200.00. The closing price of the fast food restaurant stock was $26 more per share than the closing price of the toy company stock on that day. What was the closing price of each stock on that day.

Answer 1

stock value = # of shares * stock price

x is the price of the stock of the toy store....

stock value of restaurant + stock value of toy store = total stock value

25*(x+26) + 75* x = 1200

25x + 650 + 75x = 1200

100x + 650 = 1200

100x = 550

x = 5.5

The price of the stock of the toy store is $5.50

The price of the stock of the restaurant is 31.50

25 * 31.50 + 75 * 5.50 = 1200, yes it checks!