Problema Solution
You are advised to use your $150000 in starting capital to purchase a total of 3600 shares of two stocks. The price of one stock is $35 per share, while the price of the other stock is $45 per share. Determine how many shares of each stock you can buy. Also determine if an increase to $60 per share and $100 per share respectively, is enough to make a $1.5 million down-payment on the land for your apartment complex.
Answer provided by our tutors
let
x = the number of shares from the $35 per share stocks
y = the number of shares from the $45 per share stocks
You are advised to use your $150000 in starting capital to purchase a total of 3600 shares of two stocks:
x + y = 3600
35x + 45y = 150000
by solving the above system of equations we find:
x = 1,200 shares
y = 2,400 shares
click here to see the step by step solution of the system of equations:
an increase to $60 per share and $100 per share respectively will mean the total value of the shares will become:
1,200*60 + 2,400*100 = 312,000 < 1,500,000
the increase in not enough to make $1.5 million down-payment.