Question

Jim Dawkins has $23,000 invested in stock A and stock B. Stock A currently sells for $30 a share and stock B sells for $80 a share. If stock B doubles in value and stock A goes up 50%, his stock will be worth $38,500. How many shares of each stock does he own? Jim owns shares of stock A and shares of stock B.

Answer 1

Let’s take number of stock A = x

and number of stock B = y

the equation from information given becomes,

$30x + $80y = $23000 .......equation 1

$45x + $160y = $38500 ........equation 2

Now,

Using elimination method,

Multiply equation 1 by “2“ and deduct equation 2 from equation 1

$60x + $160y = $46000 .......equation 1

$45x + $160y = $38500 ........equation 2

therefore,

$15x = $7500

x = 500

therefore number of stock A = 500

$45(500) + $160y = $38500

y = ($38500 - $22500)/$160

y = 100

therefore number of stock B = 100