Question

Suppose Wal-Mart stock is selling at $59 a share and Mattel stock is selling at $28 a share. Amy has a maximum of $6000 to invest. She wishes to purchase four times as many shares of Wal-Mart as of Mattel. Only whole shares of stock can be purchased.
a) How many shares of each will she purchase?
b) How much money will be left over?

Answer 1

Answer:

88 shares of Wall-Mart stock,

a) Step-by-step explanation,  22 shares of Mattel stock. b) $192

Given:

Suppose Wall-Mart stock is selling at $59 a share and Mattel stock is selling at $28 a share.

Amy has a maximum of $6000 to invest.

She wishes to purchase four times as many shares of Wall-Mart as of Mattel.

Only whole shares of stock can be purchased.

Question asked:

a) How many shares of each will she purchase?

b) How much money will be left over?

Solution:

Selling price of each share of Wall-Mart stock = $59

Selling price of each share of  Mattel stock = $28

Let number of shares of Mattel stock purchased = $x$

Then, number of shares of Wall-Mart stock = $4x$

Total money invested =$6000

Shares of Mattel stock $\times$ $28 + Shares of  Wall-Mart stock $\times$ $59 = $6000

$28\times x+59\times4x=6000\\28x+236x=6000\\264x=6000$

Dividing both sides by 264

$x=22\frac{192}{264}$

That means, total 22 shares of Mattel stock is purchased and 192 is the money left over:-

Number of shares of Wall-Mart stock = $4x$ = $4\times22=88$

Total amount spent on Mattel stock shares = 22 $\times$ $28 = $616

Total amount spent on Wall-mart stock shares = 88 $\times$ $59 = $5192

Total amount spent on both shares = $616 + $5192 = $5808

Money left over = $6000 -  $5808 = $192

a) He will purchase 88 shares of Wall-Mart stock and 22 shares of Mattel stock.

b) Money left over is $192.