Question

An investor has an account with stock from two different companies. Last year, her stock in Company A was worth $580 and her stock in Company B was worth $5950. The stock in Company A has increased 5% since last year and the stock in Company B has increased 18%. What was the total percentage increase in the investor's stock account? Round your answer to the nearest tenth (if necessary).

Answer 1

Explanation:

The current value of the stock in Company A is 105% of $580, or 1.05 * $580 = $609.

The current value of the stock in Company B is 118% of $5950, or 1.18 * $5950 = $7011.

The total value of the investor's stock account is $609 + $7011 = $7620.

The percentage increase in the investor's stock account is:

(7620 - 6550) / 6550 * 100% ≈ 16.3%

Therefore, the total percentage increase in the investor's stock account is about 16.3%.

Answer 2

The initial total value of the investor's account was $580 + $5950 = $6530.

After a 5% increase, the value of the stock in Company A is now $580 + (0.05)(580) = $609.

After an 18% increase, the value of the stock in Company B is now $5950 + (0.18)(5950) = $7021.

The new total value of the investor's account is $609 + $7021 = $7630.

To find the percentage increase in the investor's stock account, we can use the formula:

percentage increase = [(new value - old value)/old value] x 100%

Plugging in the values, we get:

percentage increase = [(7630 - 6530)/6530] x 100% = 16.9%

Therefore, the total percentage increase in the investor's stock account is approximately 16.9%.