Question

Use the four-step method in problem solving to solve the problem.

An accountant receives a salary of $271,250 per year. During the year, he plans to spend $98,000 on his mortgage, $56,000 on food, $35,000 on clothing, $46,000 on household expenses, and $28,000 on other expenses. With the money that is left, he expects to buy as many shares of stock at $250 per share as possible. How many shares will he be able to buy?
a) 33 shares
b) 32 shares
c) 35 shares
d) 30 shares

Answer 1

To solve this problem, we can use the four-step method: determine total expenses, calculate remaining money, divide remaining money by stock price, and round down the number of shares. The accountant will be able to buy 33 shares of stock.

Step-by-step explanation:

To solve this problem, we can use the four-step method: 1) Determine the total amount of money spent on expenses by adding up all the expenses; 2) Subtract the total amount of expenses from the accountant's salary to find the remaining money; 3) Divide the remaining money by the cost of each share of stock to find the number of shares the accountant can buy; 4) Round down the result to the nearest whole number to get the final answer. Let's go through the steps:

1. Total amount of expenses: $98,000 + $56,000 + $35,000 + $46,000 + $28,000 = $263,000
2. Remaining money: $271,250 - $263,000 = $8,250
3. Number of shares: $8,250 ÷ $250 = 33
4. Final answer: The accountant will be able to buy 33 shares of stock.