Math Problem Statement

An investor owns shares of Stock A and Stock B. The investor owns a total of 200 shares with a total value of $4000. How many shares of each stock does the investor own?

Solution

The problem involves determining how many shares of two stocks (A and B) an investor owns, given the following:

  1. Total number of shares owned: 200.
  2. Total value of the shares: $4000.
  3. Price per share of Stock A: $9.50.
  4. Price per share of Stock B: $27.00.

Let:

  • xx = the number of shares of Stock A,
  • yy = the number of shares of Stock B.

Step 1: Write equations based on the problem:

  1. Total number of shares: x+y=200x + y = 200.
  2. Total value of shares: 9.50x+27.00y=40009.50x + 27.00y = 4000.

Step 2: Solve the system of equations:

From the first equation: y=200x.y = 200 - x.

Substitute y=200xy = 200 - x into the second equation: 9.50x+27(200x)=4000.9.50x + 27(200 - x) = 4000.

Simplify: 9.50x+540027x=4000.9.50x + 5400 - 27x = 4000. 17.50x+5400=4000.-17.50x + 5400 = 4000. 17.50x=1400.-17.50x = -1400. x=140017.50=80.x = \frac{-1400}{-17.50} = 80.

Step 3: Solve for yy:

Using y=200xy = 200 - x: y=20080=120.y = 200 - 80 = 120.

Final Answer:

  • The investor owns 80 shares of Stock A.
  • The investor owns 120 shares of Stock B.

Would you like a detailed explanation of any step or have additional questions?


Here are 5 related questions for further practice:

  1. What if the total number of shares was 300 instead of 200?
  2. How would the calculations change if Stock A's price per share increased to $10.50?
  3. What is the total value of Stock A owned by the investor?
  4. If the investor sells 40 shares of Stock B, how does it impact the total value of the shares?
  5. Can you write a system of equations for a similar problem with three stocks?

Tip: For systems of equations, substituting one variable into another is an efficient way to reduce the system to a single equation.

Ask a new question for Free

By Image

Drop file here or Click Here to upload

Math Problem Analysis

Mathematical Concepts

Algebra
Systems of Linear Equations

Formulas

x + y = Total shares
Price_A * x + Price_B * y = Total value

Theorems

Substitution method for solving linear systems

Suitable Grade Level

Grades 8-10