Math Problem Statement
Solution
The question from the image asks about calculating the total percentage increase in the value of an investor’s stock portfolio, given two stocks with different initial values and different percentage increases. Here's how to solve it:
Given:
- Stock in Company A was worth $2600 and increased by 19%.
- Stock in Company B was worth $3450 and increased by 22%.
Step 1: Calculate the new value of each stock.
For Company A:
- Increase =
- New value of Company A stock =
For Company B:
- Increase =
- New value of Company B stock =
Step 2: Calculate the total portfolio value before and after the increases.
- Total value last year =
- Total value this year =
Step 3: Calculate the total percentage increase in the portfolio.
So, the total percentage increase in the investor’s stock account is approximately 20.7%.
Would you like a further breakdown of any part of this solution? Here are some related questions:
- How would the solution change if the percentages of stock increases were different?
- What if one stock had decreased in value instead of increasing?
- How do you calculate the new total portfolio value after a certain percentage change?
- What formula can you use for percentage increase in other financial situations?
- How can you express the overall portfolio increase in dollar terms instead of percentages?
Tip:
Always double-check your percentage calculations, especially when dealing with investments, as small errors can lead to significantly different financial results.
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Math Problem Analysis
Mathematical Concepts
Percent Increase
Algebra
Stock Valuation
Formulas
New Value = Old Value + (Old Value * Percentage Increase / 100)
Total Percentage Increase = ((New Total - Old Total) / Old Total) * 100
Theorems
-
Suitable Grade Level
Grades 7-10
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