Norman and Suzanne own 27 shares of a fast food restaurant stock and 63 shares of a toy company stock. At the close of the markets on a particular day in 2004, their stock portfolio consisting of these two stocks was worth $981.00. The closing price of the fast food restaurant stock was $28 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?

Question

Lillianna Stanley

Mathematics

26 September, 12:37

Norman and Suzanne own 27 shares of a fast food restaurant stock and 63 shares of a toy company stock. At the close of the markets on a particular day in 2004, their stock portfolio consisting of these two stocks was worth $981.00. The closing price of the fast food restaurant stock was $28 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?

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Answers (1)

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Hezekiah Kelly · Answer 1

The closing price of the fast food restaurant was $30.5 and that of the toy company was $2.5.

Step-by-step explanation:

Let the price of each share of the toy company is $y and that of the fast-food restaurant is $x.

So. from the given condition we can write that, x = y + 28 ... (1)

Again, it is given that the total value of stocks that they are holding was worth $981.00.

So, 27x + 63y = 981 ... (2)

Hence, solving equations (1) and (2) we get,

27 (y + 28) + 63y = 981

⇒ 90y = 225

⇒ y = $2.5

And from equation (1), we have x = 28 + 2.5 = $30.5

So, the closing price of the fast food restaurant was $30.5 and that of the toy company was $2.5. (Answer)