Answer:
Stock A = 400 and Stock B = 100
Explanation:
Rachel invested $26,000 in stock A and stock B at $50 and $60 respectively. The first equation will be:
⇒ 26,000 = A50 + B60 (equation 1)
After some time,
- The stock A increases by 50% which means the value of stock A currently is (50 x 150%) = $75
- The stock B doubles in value which means the value of stock B currently is (60 x 2) = $120
The total worth of the both stock is now $42,000. The second equation will be:
⇒ 42,000 = A75 + B120 (equation 2)
We have 2 equations now,
⇒ 26,000 = A50 + B60 (equation 1)
⇒ 42,000 = A75 + B120 (equation 2)
To solve this, multiply equation 1 by -2,
⇒ (-2 x 26,000) = (-2 x A50) + (-2 x B60)
⇒ -52,000 = -A100 - B120 (equation 3)
Solve equation 2 and 3 to compute the value of A:
⇒ 42,000 = A75 + B120
⇒ -<u>52,000 = -A100 - B120</u>
⇒ -10,000 = -A25
⇒ A = -10,000/-25
⇒ A = 400
Substitute the value of A in any of the above equation to compute B, let's say in equation 1:
⇒ 26,000 = A50 + B60
⇒ 26,000 = (400)50 + B60
⇒ 26,000 = 20,000 + B60
⇒ B60 = 26,000 - 20,000
⇒ B60 = 6,000
⇒ B = 6,000/60
⇒ B = 100
