Math Problem Statement
Solution
To solve the problem, we need to find the total percentage increase in the investor's stock account after the increases in both companies' stock values.
Given:
- Company A's stock was worth $2220 last year and increased by 20%.
- Company B's stock was worth $7420 last year and increased by 5%.
Steps:
-
Find the increase in Company A's stock:
- Percentage increase = 20% of $2220
- Increase in Company A =
- New value of Company A stock =
-
Find the increase in Company B's stock:
- Percentage increase = 5% of $7420
- Increase in Company B =
- New value of Company B stock =
-
Find the total value of the stock account after the increases:
- Total value now =
-
Find the total percentage increase in the account:
- Original total value =
- Total increase =
- Total percentage increase =
Final Answer:
The total percentage increase in the investor's stock account is 8.5%.
Would you like further clarification on any of these steps or more examples?
Here are some related questions to explore further:
- How do you calculate the percentage change when the increase or decrease is a decimal value?
- What would happen to the total percentage increase if the increase rates for both companies were higher?
- How can we calculate the percentage decrease in a similar situation?
- How would you approach solving a percentage change problem with multiple investments in different areas?
- What’s the significance of rounding percentages in financial calculations?
Tip: Always check whether you need to round the final answer to the nearest tenth or hundredth for precision, especially in financial contexts!
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Math Problem Analysis
Mathematical Concepts
Percentage Change
Percentage Increase
Basic Arithmetic
Formulas
Percentage increase = (New Value - Old Value) / Old Value * 100
Theorems
-
Suitable Grade Level
Grades 7-8
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