Question

Norman and Suzanne own 39 shares of a fast food restaurant stock and 63 shares of a toy company stock. At the close of the markets on a particular day in 2004, thestock portfolio consisting of these two stocks was worth $1671.00. The closing price of the fast food restaurant stock was $18 more per share than the closing price ofthe toy company stock on that day. What was the closing price of each stock on that day?The price per share of the fast food restaurant stock is $.

Answer 1

Given:

The number of shares in fast food =39.

The number of shares in a toy company = 63.

Let x be the closing price of the toy company stock.

The closing price of the fast-food restaurant stock is $18 more per share than the closing price of the toy company stock on that day.

The closing price of the fast-food restaurant stock =x+18.

The worth of two stocks = $1671.00.

`39(x+18)+63x=1671`

`39x+702+63x=1671`

`102x+702=1671`

Subtracting 702 from both sides, we get

`102x+702-702=1671-702`

`102x=969`

Dividing both sides by 102, we get

`(102x)/(102)=(969)/(102)`
`x=9.50`

We get x= $9.50

The closing price of the toy company stock =$9.50.

Add 18 to $19.50 to find the closing price of the fast-food restaurant stock.

The closing price of the fast-food restaurant stock =9.50+18= $27.50

Hence the price per share of the fast-food restaurant stock is $ 27.50.

The price per share of the toy company stock is $ 9.50.