Question

Suppose Nike stock is selling at ​$73 a share and Kellogg stock is selling at ​$38 a share. Mike Moussa has a maximum of​ $10,000 to invest. He wishes to purchase 5 times as many shares of Kellogg as of Nike. Only whole shares of stock can be purchased.

Answer 1

The maximum number of Nike shares Mike can buy is 38 and the maximum number of Kellogg shares is 190

Explanation:

Let

x -----> the number of shares of Nike stock

y ----> the number of shares of Kellogg stock

we know that

`73x+38y\leq 10,000` -----> inequality A

`y=5x` -----> equation B

substitute equation B in the inequality A

`73x+38(5x)\leq 10,000`

`73x+190x\leq 10,000`

`263x\leq 10,000`

`x\leq 38.02`

The maximum number of shares of Nike stock is 38

Find out the maximum number of shares of Kellogg stock

`y=5(38)=190`

therefore

The maximum number of Nike shares Mike can buy is 38 and the maximum number of Kellogg shares is 190