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Homework answers / question archive / Let’s suppose that for the month of December, ESPN’s stock decreased from $88 to $78 per share and NBC’s stock decreased from $48 to $45 per share
Let’s suppose that for the month of December, ESPN’s stock decreased from $88 to $78 per share and NBC’s stock decreased from $48 to $45 per share. If you invested a total of $20,680 in the stock of these two companies at the beginning of December and then sold their stocks at the end of December for $18,870, then how many shares of each stock did you buy? Show all the necessary work that you need perform to arrive at the answer. The answer should be in the form of a sentence.
let x = number of ESPN shares purchased
y = number of NBC shares purchased
Total amount tnvested = number of shares * price per share
88x + 48y = 20,680................(1)
at the end of the month total sale value = 18870
so, 78x + 45y = 18870...........(2)
Multiply the Equation 1 with 45 and Equation 2 48
(88*45)x + (48*45y) = (20,680*45)...........(3)
(78*48)x + (45*48y) = (18,870*48)...........(4)
(3) - (4)
3960x + 2160y = 930,600
-3744x - 2160y = - 905,760
216x = 24,840
so x = 24,840 / 216
so number of ESPN shares Purchased (x) = 115
by substituting the value of x in Equation (1)
(88*115) + (48*y) = 20,680
48y = 10560
y = 10560 / 48
Number of NBC shares Purchased = 220
ESPN = one hundred fifteen
NBC = two hundred twenty
