Math Problem Statement

Joyce mother buys some shares of Company A on Day 0. On Day 7, the share price of Company A is $4.60. If she sells all her shares of Company A and buys 2000 shares at Company B on Day 7, she would receive $7400. On Day 12, the share price of Company A is $4.80 and the share price of Company B is $0.50 less than that on Day 7. If she sells all her shares of Company A and buys 5000 shares on Company B on Day 12, She would have to pay $5800. Find (i) the number of shares of Company A Joyce mother has, (ii) the share price of Company B on Day 12

Solution

Let's break down the problem step by step.

Given:

  1. On Day 7:

    • The share price of Company A is $4.60.
    • Joyce's mother sells all her shares of Company A and buys 2000 shares of Company B.
    • She receives $7400 after buying the shares of Company B.
  2. On Day 12:

    • The share price of Company A is $4.80.
    • The share price of Company B is $0.50 less than that on Day 7.
    • She sells all her shares of Company A and buys 5000 shares of Company B.
    • She has to pay $5800.

We need to find:

  1. The number of shares of Company A Joyce's mother has on Day 7.
  2. The share price of Company B on Day 12.

Step 1: Find the Share Price of Company B on Day 7

Let the share price of Company B on Day 7 be PBP_B.

When she buys 2000 shares of Company B on Day 7, she uses the money obtained from selling her shares of Company A. So: Total money from selling shares of Company A2000×PB=7400\text{Total money from selling shares of Company A} - 2000 \times P_B = 7400 Total money from selling shares of Company A=2000×PB+7400\text{Total money from selling shares of Company A} = 2000 \times P_B + 7400

Step 2:

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Math Problem Analysis

Mathematical Concepts

Financial Mathematics
Equations
Investment Analysis

Formulas

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Theorems

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Suitable Grade Level

High School