Question

A person has $10,100 to invest in two different stock. Stock ABC costs $32 per share and pays dividends of $1.20 per share. Stock XYZ costs $23 per share and pays dividends of $1.40 per share. If she wants to earn a total of $540 in dividends, how much money should be invested in company ABC?

Answer 1

Answer:

$ 3199.0

Step-by-step explanation:

Let the number of shares of ABC = x

and XYZ = y

writing each as a linear equation

32 x + 23 y = 10100  equation 1

1.2 x + 1.4 y = 540

1.4 y = 540 - 1.2 x

y = (  540 - 1.2 x) / 1.4

substitute for y in equation 1

32 x + 23( 540 - 1.2 x) / 1.4 = 10100

32 x + 8871.43 - 19.71 x = 10100

collect the like terms

32 x -  19.71 x = 10100 - 8871.43

12.29 x = 1228.57

x = 1228.57 / 12.29 = 99.97

the amount of money to be invested in ABC shares = 99.97 × $ 32 = $ 3199.0