Ask Question
BusinessBusiness
27 November, 14:12

Rachel Dawkins has $26,000 invested in stock A and stock B. Stock A currently sells for $50 a share and stock B sells for $60 a share. If stock B doubles in value and stock A goes up 50%, her stock will be worth $42,000. How many shares of each stock does she own?

+3
Answers (2)
  1. 27 November, 14:19
    0
    Stock A = 400 and Stock B = 100

    Explanation:

    Rachel invested $26,000 in stock A and stock B at $50 and $60 respectively. The first equation will be:

    ⇒ 26,000 = A50 + B60 (equation 1)

    After some time,

    The stock A increases by 50% which means the value of stock A currently is (50 x 150%) = $75 The stock B doubles in value which means the value of stock B currently is (60 x 2) = $120

    The total worth of the both stock is now $42,000. The second equation will be:

    ⇒ 42,000 = A75 + B120 (equation 2)

    We have 2 equations now,

    ⇒ 26,000 = A50 + B60 (equation 1)

    ⇒ 42,000 = A75 + B120 (equation 2)

    To solve this, multiply equation 1 by - 2,

    ⇒ (-2 x 26,000) = (-2 x A50) + (-2 x B60)

    ⇒ - 52,000 = - A100 - B120 (equation 3)

    Solve equation 2 and 3 to compute the value of A:

    ⇒ 42,000 = A75 + B120

    ⇒ - 52,000 = - A100 - B120

    ⇒ - 10,000 = - A25

    ⇒ A = - 10,000/-25

    ⇒ A = 400

    Substitute the value of A in any of the above equation to compute B, let's say in equation 1:

    ⇒ 26,000 = A50 + B60

    ⇒ 26,000 = (400) 50 + B60

    ⇒ 26,000 = 20,000 + B60

    ⇒ B60 = 26,000 - 20,000

    ⇒ B60 = 6,000

    ⇒ B = 6,000/60

    ⇒ B = 100
  2. 27 November, 14:32
    0
    The Stock A = 400 and Stock B = 100

    Explanation:

    From the question given, we solve the problem as stated

    Rachel invested $26,000 in stock A and stock B at prices of $50 and $60 respectively.

    The first equation is given as:

    26,000 = A50 + B60

    Then,

    After a while, the stock A increases by 50% this means that,

    the value of stock A currently is (50 x 150%) = $75

    The stock B increases in value this means,

    The current value of stock B is (60 x 2) = $120

    The total stock both are worth is $42,000.

    Thus,

    The second equation becomes:

    42,000 = A75 + B120

    We now have 2 equations.

    The Equation 1 is denoted as:

    26,000 = A50 + B60 (equation 1)

    The equation 2 is denoted as:

    42,000 = A75 + B120 (equation 2)

    To Further solve this, we multiply equation 1 by - 2,

    Which is,

    (-2 x 26,000) = (-2 x A50) + (-2 x B60)

    52,000 = - A100 - B120 (equation 3)

    Solve equation 2 and 3 to get the value of A:

    42,000 = A75 + B120

    -52,000 = - A100 - B120

    -10,000 = - A25

    A = - 10,000/-25

    A = 400

    Substitute the value of A in any of the equation to get B,

    So,

    26,000 = A50 + B60

    26,000 = (400) 50 + B60

    26,000 = 20,000 + B60

    B60 = 26,000 - 20,000

    B60 = 6,000

    B = 6,000/60

    Therefore, B = 100
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Rachel Dawkins has $26,000 invested in stock A and stock B. Stock A currently sells for $50 a share and stock B sells for $60 a share. If ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Is stability really a strategy or just a term for no strategy?
Answers (1)
New customers may be turned over to account servicing salespeople referred to as a. hunters b. merchandisers c. missionary salespeople d. pioneers e. farmers
Answers (1)
How do the three unique and uncontrollable variables in a global environmental scan impact international and multicultural marketing strategies?
Answers (1)
Contract incentives are often used when the buyer wants the seller to meet some defined project metrics, such as finishing the project early, providing a higher level of quality or more features, or anything else that the buyer wants to maximize and
Answers (1)
John and Sharon enter into an employment contract, which specifies that Sharon will be employed by John for one year at an annual salary of $45,000 plus benefits. The employment contract is an example of:
Answers (1)
New Questions in Business
Evan has a Bachelor's degree in ethics and human resources, and he has extensive experience working with employees and managers regarding ethics, especially in the area of ethical dilemmas.
Answers (1)
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts.
Answers (1)
Tumbler Co. had an inventory balance of $15,250 on January 1, purchased $34,000 during the accounting period, and the cost of goods sold was $28,000. What is the ending balance in the inventory account?
Answers (1)
On January 2, 2012, Farr Co. issued 10-year convertible bonds at 105. During 2012, these bonds were converted into common stock having an aggregate par value equal to the total face amount of the bonds.
Answers (1)
Why is an organizational structure important? A. It allows having minimum resources to complete tasks. B. It allows clumsy or unclear reporting structure, C. It ensures that the right people occupy the right positions. D.
Answers (1)
Home » Business » Rachel Dawkins has $26,000 invested in stock A and stock B. Stock A currently sells for $50 a share and stock B sells for $60 a share. If stock B doubles in value and stock A goes up 50%, her stock will be worth $42,000.
Sign Up Forgot Password?